Entraction to leave Cardroom2 strategic partnership with Boss Media AB

Before year end Entraction will close down the Cardroom2 strategic partnership they have had with Boss Media since March 2007. The announcement comes shortly after Entraction September 17, 2009 was able to announce they had entered into an agreement with Sportingbet Plc. to provide poker software to Paradise Poker in certain countries where Boss Media AB and the IPN Poker Network did not accept customers from. The aforementioned agreement between Sportingbet Plc and Entraction might be the reason for the partnership to end sooner than expected as the agreement was certainly not blessed by Boss Media upfront.

Low revenues

Entraction states in the press release that they no longer need the Cardroom2 for liquidity purposes and that only 5% of total Entraction poker revenues are coming from the Cardroom2 activities. Boss Media are player liquidity wise much stronger than Entraction with up to 60% more cash players logged in at peak hours and seen from a strategic point of view it seems like Entraction might lose not only revenue income from Boss but also Entraction poker players who used both networks through the one wallet system operated by Entraction.

For IPN Poker Network the impact of losing Cardroom2 is insignificant and estimated from our end to account for less than 3% of their total poker revenues. The total reflection on revenues is definitely going to be less than 3% and might even end up as a gain for Boss Media as Cardroom2 players now need to find a Boss Media licensee as their poker provider in case they still want to play at Boss Media software against Boss Media poker players.

Interview with Pia Rosin

Bonusriders.com interviewed Pia Rosin, Entraction’s Corporate Communications Director, and during the interview she revealed that Entraction believed the administration costs of the Cardroom2 did not really warrant a continuation of the partnership with Boss Media AB and that the Q1 result 2010 was where it would show the real material impacts of the closure of Cardroom2 if any. Bonusriders.com also asked Pia Rosin directly if Entraction had been notified by Boss Media AB regarding Boss wanting to terminate the contract to which she answered that to her knowledge this was not the case and that Entraction was the ones deciding upon the termination of the Cardroom2 partnership.

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