CryptoLogic (ticker: CRYP), a software and services provider to the worldwide Internet gaming market, announced Q4 2004 results today. Here are key quotes from the conference call:
On prospects in Asia:
....Asia offers tremendous growth potential but in fact, it's actually just that. It's potential, because while we -- we've seen huge player, gaming player business in Asia, it's not been of the type that we're involved in. It's been cell phone games and it's been skill based games and it's been subscription based services. You see, the challenges in Asia have to be analyzed on a country by country basis, and so with both fragmented legislation and restricted payment opportunities.
For example, we have seen some encouraging traction in Japan, but China is very slow to develop, given the absence of the ability for -- for the players to deposit into the payment mechanisms that you and I have become so -- we take for granted frankly, because there's no international credit card usage that is in circulation the way it is in North America.
So while Asia appears to be a substantial market, both the legislation and the payment mechanisms have not yet been developed to allow the opportunity for online gaming in Asia to equal the interest, because obviously people would generally make comments like, Asian gamers are huge wagerers and there's a tremendous opportunity given the number, and the explosion of the Internet in Asia.
(Quotes are from the CCBN StreetEvents transcript.)