CashCade has made a splash on the scene recently by keeping itself in the news. This time it is because one of the top online gambling casino operators has just taken over the gambling site. PartyGaming acquired the largest bingo site in the United Kingdom for a small fee of $158.82 million. This purchase by partygaming will bring it to a $1.5 billion cut of the global share of online bingo play.
Cashcade was recently announced as the largest online bingo gambling site based out of the United Kingdom. The three subsidiary companies that make up Cashcade include: FoxyBingo.com, MirrorBingo.com, ThinkBingo.com and CheekyBingo.com. PartyGaming also has a subsidiary site PartyPoker.com that will now also benefit from the new acquisition.
According to the news, PartyGaming has agreed to pay the initial part of the $158.82 by putting down $119.06 million up front, and the remainder following a strong revenue generated by CashCade. This $39.74 million will be due once CashCade shows continual progress in their growth of revenue.
This is the first acquisition by PartyGaming since their United States settlement concerning online gambling provided to US customers before the 2006 ban. PartyGaming has since refused to go near the United States until their legislation changes. Their last encounter with the Department of Justice set them back a cool $105 million.
According to Jim Ryan, Chief Executive Officer for PartyGaming, this deal will be significant in their growth concerning the growing online bingo market. Although this will create a huge bingo family for PartyGaming, Ryan also stated, “Our longer-term strategic objective is to become the market-leader in online poker, casino, sports and bingo”
2008 saw a large boom in revenue generated by Cashcade as their profit doubled to $20.19 million. Their net revenues also rose from $47.18 million to $74.32 million by 2008. By acquiring this online bingo franchise, Partygaming will now be responsible for over 23% of the UK bingo market.
