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Business: GameLogic receives $3 million in financing

December 22, 2008

U.S. software developer GameLogic announced Wednesday that it received $3 million in debt financing from Velocity Financial Group.

Accoding to Velocity principal J.P. Marchette, the finance company has become exceedingly selective due to the “current economic environment.” But, he said, Velocity saw “a tremendous opportunity” in the case of GameLogic.

One of the principle reasons for Velocity’s confidence is the success of GameLogic’s “PlayAway” system. Under PlayAway, players can purchase “MoneyPlay” tickets from participating land-based casinos and redeem them for online play. Winnings are paid within the issuing casino upon the player’s next visit, thus avoiding online money transfers – which are forbidden in the U.S. under the Unlawful Internet Gambling Enforcement Act or 2006.

To date, 21 brick-and-mortar casinos in 15 states participate in the program. On average, participants report a two-fold increase in patron interest, while the company says, the system increases active club-card membership by 2.5 percent.

“Our ability to proactively raise debt on favorable terms in these turbulent economic times is a testament to our solid business model and the tremendous opportunity to leverage the popularity of Internet games in the regulated U.S. gambling markets,” GameLogic president and CEO John E. Taylor Jr. said. “We are pleased that Velocity engaged us and that we were able to form this mutually beneficial relationship.

“Casino marketers are experiencing unprecedented economic challenges that require a complete rethink of marketing to existing players and finding new ones. Our products provide a solution to this challenge: low cost, efficient and entertaining ways for casinos to boost their marketing efforts.”

phill.provance@gamblingplanet.org

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