Amaya: The Canadian Poker Powerhouse

Amaya Gaming Group was founded in 2004 by a young David Baazov as a business to business (B2B) software provider. Their initial focus was lottery and casino software such as online slots where they achieved good success. Many major operators still use Amaya slot software, for example those listed on http://casinoservice.org/spilleautomater. They remained a small company for their first few years of existence. The online gaming for which they are now renowned did not appear until 2011. In 2010, Amaya made the switch and became a publicly traded company on the TSX Venture Exchange. At the time, they were still primarily a B2B company, but their range of software had increased to include multi-gaming platforms, game libraries, and a game revenue tracking module.

In 2011, Amaya took steps toward expanding its online poker network. The first move was to secure additional rights to host online gaming in different countries. In 2011, Amaya added Kenya to its its previous licenses in the Dominican Republic and Uganda. While these were very small markets, they would still prove to be a solid base upon which the company could expand. They complimented this step with their first major acquisition, that of Chartwell Technologies, a steal at less that $0.88 per share. This was particularly beneficial in that it both opened up the private iPoker industry to Amaya expansion, as well as increasing the name recognition of Amaya based on Chartwell’s long history in the online gaming market.

Amaya powered into the following year with the acquisition of Cryptologic in late December of 2011. While the deal was made for an initially undisclosed amount, it was later revealed that the company sold for $35.8 million. Amaya would later sell WagerLogic, a Cryptologic subsidiary, to Goldstar Acquisitionco Inc. in a transaction valued at $70 million in February 2014. The acquisition of Cryptologic gave Ayama its first real online gaming platforms, and coupled with their already well tested host of gaming network software, they were able to make a serious venture into the new market. This acquisition put Amaya on the map as a real force within the iPoker world, as it was clear that a serious portfolio was being built. It also gave Amaya its first strong foothold in Europe.

Amaya continued to gain steam in 2012 as it picked up Cadillac Jack, a company that supplied small and medium casinos and bingo halls across the US and Mexico. While Cadillac Jack was a much smaller name than Amaya’s previous acquisitions, it greatly supplemented Amaya’s ability to attack the live table poker market, and there is no doubt that Amaya’s online and live poker offerings helped corner a larger portion of the overall poker market.

Cadillac Jack was dwarfed by Amaya’s other great 2012 deal, the acquisition of the OnGame poker network. While OnGame was considered a flagging network at the time, it was still a significant upgrade to the current online offerings Amaya had at the time. Moreover, coupled with the renewing energy, fiscal backing, and technological support of their new parent, OnGame was readily turned around into a profitable venture. It helps that the deal was concluded for $32.5 million, a reasonable sum for the size of the purchase.

All of these moves were merely stepping stones to Amaya’s ultimate acquisition and the reason it is now the largest online poker network in the world (based on usage reports and money exchanged). In 2014 Amaya concluded a $4.9 Billion (CAD) dollar deal for the reverse acquisition of The Oldford Group. While you have likely never heard of the Oldford group, they are the parent company of the Rational Group who in turn own two of the most famous iPoker sites, Full Tilt and PokerStars. And with that acquisition Amaya took control of those two mega-networks in addition to a few other choice holdings including the European Poker Tour, the Latin American Poker Tour, and the Asia Pacific Poker Tour. With this expansion, Amaya has become the dominant player in the online poker market and since July 8th 2015, Amaya has been the world’s largest publicly traded real money online gaming company, accountable for approximately 70% of the global online poker market.

Of course, becoming the industry leader is no reason to stop working, and Amaya has certainly continued to stretch its wide arms toward new horizons. Most recently Amaya got license approval from the New Jersey Division of Gaming Enforcement to start hosting iPoker for the state. While New Jersey is a much smaller market than Canada or the European market, New Jersey is likely only a foot in the door. Amaya has previously shied away from hosting poker in the States because of the legal restrictions that came with the Unlawful Gambling Enforcement Act of 2006. Moreover, a number of states attempting to legalize, California for example, are still having trouble deciding if Amaya should be allowed to pursue license because Fult Tilt and PokerStars operated within the country after the passing of the aforementioned act.

Still, it seems likely that over the next few years another host of states will legalize online gambling and Amaya will no doubt be ready to capitalize on it with all of the haste and strategy they have shown in the last five years. A successful run in New Jersey will also likely help them push legalization and lobbying in other states that are still teetering back and forth with current legalization legislation. Regardless, expect to see this major company and its subsidiaries in the news again. Whether for good or for ill, they will surely be a face of future poker news.

About the author: Paul Nirenberg is a regular contributor for PokerVIP and PokerTube where he writes about poker strategy, industry, and event news.