CryptoLogic Ltd. is gambling on China's favorite game, they are taking a minority stake in online software provider Mahjong Time to raise their presence in the Asian Market.

In the agreement that unveiled on Tuesday, we will see gambling software company CryptoLogic invest up to $2.5 million dollars for a "significant minority equity stake" in the provider of online Mahjong software and the purchase is expected to close within the next 30 days.

Todd Eilers is an analyst with Roth Capital Partners in Newport Beach said that CryptoLogic is taking the right steps to create a profitable and sustainable business model in Asia. “This is a key piece of the long-term growth of the industry,” he said, adding that all Internet gaming companies are looking to the heavily-populated region as the next wave of growth.

Mr. Eilers also said in a recent interview, “The deal itself is not all that big, but it fits nicely with a couple other small investments CryptoLogic has already made in building out their online gaming business into Asia". He also noted that the company has made three minority investments in Asian gaming over the last two years for a total investment of $10 million dollars.











- 2008-04-02