Cryptologic to relocate its headquarters to Dublin

The 77 million euros a year group is moving its corporate headquarters to Dublin from Toronto in Canada and is expected to set up here in early June. It will be incorporated in the channel island of Guernsey for tax reasons and because such businesses favour offshore locations.

The final stage is to get approval from the Ontario superior court and the hearing is due to go ahead tomorrow. The move is partly driven by the ban on internet gambling imposed by US authorities last year, which resulted in the arrest of a number of leading industry figures.

That development meant the focus of the 6 billion euros a year online betting industry switched from the US to Europe, where gambling regulation is being liberalised, particularly in the EU.

Earlier this month, a Cryptologic spokesman explained that the company had anticipated the US clampdown and had been seeking a base in Europe. He said the firm chose Ireland because of the high quality of personnel and graduates and "ready air access to European centres".

He added that the company could look at locating other elements of the business in the Republic in the future, but stressed that this would be some way down the road. Initially, its CEO Javaid Aziz and CFO Stephen Taylor will be based in Dublin, along with 10 employees.

Cryptologic is listed in London, Toronto and on New York's Nasdaq. Last year, it had revenues of us$ 104 million and earnings of us$ 27.2 million.