The Australian IT re-seller Synergy Plus has turned its focus to the online casino market based on a recent report in CRN.
The company intends to acquire Australian online casino operator VGW Holdings Ltd, owner of sweepstakes “social online casino” Chumba Casino.
The company has a troubled past including financial difficulties with reports claiming that it owed millions of dollars to creditors in 2011. In 2013 the company entered into a deed of company arrangement and announced its exit from administration and along with plans to buy gold and base metal assets, which it ultimately did not do.
VGW Holdings’ Virtual Gaming Worlds is popular on Facebook and is looking to expand into the international market with its online lottery, poker and sports products.
jade
8 years ago
It sounds like in this case it is not going to be a surprise. What is a surprise is that anyone would want to buy a company with so many problems. Maybe they were able to get it for a song, real cheap. I know I've said this before, but it is difficult for me to see how these social sites make huge profits or why players...
It sounds like in this case it is not going to be a surprise. What is a surprise is that anyone would want to buy a company with so many problems. Maybe they were able to get it for a song, real cheap. I know I've said this before, but it is difficult for me to see how these social sites make huge profits or why players would buy credits if they couldn't cash out their winnings and these sites continue to thrive......
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Vanenhox
8 years ago
Sorry I'm confused which company is which. Is the company buying the casino company the one which has had a checkered financial past or is it the casino company which had the troubled past. If it is the one buying the casino company I think that it is interesting that a casino business can be just a commodity to very large...
Sorry I'm confused which company is which. Is the company buying the casino company the one which has had a checkered financial past or is it the casino company which had the troubled past. If it is the one buying the casino company I think that it is interesting that a casino business can be just a commodity to very large firms which trade in other commodities like metals. A casino company gets a lot of its value from the somewhat intangible perception of it's integrity and reputation amongst those who use it. How is that rep affected when it is taken over by a much larger company that buys and sells for pure profit motives? Will most players even be aware of this if no change in the casino's day to day management and policies which impact players occurs? Of course there are many stories of how such a takeover comes to really change the casino and it's reputation...but that usually takes the players by surprise after the fact, doesn't it?
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