|Shuffle Master Withdraws from Ongame Network Acquisition|
Casino game developer Shuffle Master announced this week that it had officially withdrawn its interest from acquiring online poker firm Ongame Network.
Shuffle Master stated that it had concerns over Ongame Network not being able to meet its targets for the near-term results. The talks breaking down is a huge blow to Shuffle Master that was hoping to use the acquisition as an opportunity to enter the online gambling market.
As a result of the failed takeover, Shuffle Master’s shares were down by 6% to $12.58 on the Nasdaq yesterday. The company will now re-start its search for another party to become involved with in order to get involved in the online gambling market.
Shuffle Master CEO Gavin Isaacs commented "It has become evident to us that Ongame's operations post-acquisition will not achieve the near-term results we initially expected and will require a larger ongoing investment than anticipated.”
Casino game developers have been frantically looking to set up partnerships with online gaming firms ever since the US Department of Justice confirmed states could look at legalising all forms of online gambling earlier this year.
Earlier this month, Bally Technologies, IGT and William Hill Casino were all handed gaming licences in Nevada that would give the firms the opportunity to begin operating online as soon as online gambling is legalised in the state.
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