The Ongame Poker Network officially has a new owner.
Earlier this month the previous owners, bwin.Party Digital Entertainment, announced that the long-time online poker network had been sold to Amaya Gaming Inc.
Terms of the deal included an initial payment of €15 million ($19.3 million) that will be payable to bwin.Party during the fourth quarter of 2012 when the deal officially closes.
bwin.Party could receive up to another €10 million ($12.9 million) should online poker become legal in the United States in the next five years.
Second Time's the Charm
This is actually the second time this year that bwin.Party had announced a sale of the Ongame Network.
Back in February, Shuffle Master of Las Vegas, NV had agreed to buy Ongame for €19.5 million upfront and the same terms regarding US online poker legalization.
In June the company decided to back out of the deal stating that Ongame would not make the short-term profits that they had predicted. Amaya Gaming then stepped up with the deal to buy the network.
bwin.Party Co-CEOs Jim Ryan and Norbert Teufelberger stated that "The sale of Ongame conforms to our strategy, especially as we move closer to launching our single, proprietary technology platform in the next few months. We believe Ongame will fit well into Amaya Gaming and has an excellent future ahead."
David Baazov, the CEO of Amaya Gaming Group, Inc, joined in saying that "The acquisition of Ongame bolsters Amaya Gaming’s product portfolio, transforming Amaya into a leading provider of gaming platforms.
"Amaya looks forward to unleashing Ongame’s technology to its full potential through the leveraging of our many B2B relationships and delivering new partners and players to the network."
bwin bought the Ongame Network back in 2006 when bwin was still known as betandwin.com. The purchase price of $570 million included PokerRoom.com, one of the oldest online poker sites.
bwin merged with Party Poker in March 2011 and became bwin.Party. Ongame was then declared to be a "surplus asset" and it was announced at the end of June 2011 that the network would be sold.
The purchase of Ongame by Amaya Gaming Group provides the company a solid and lon- standing online poker network that can be marketed to its clients and can offer legalized online poker.
Once the United States full legislates online poker, Amaya Gaming will be able to offer a ready-made online poker network that will give casinos options not tied to major online sites like PokerStars or to major casinos like Caesars Interactive Entertainment.