Once upon a time Parlay Entertainment was considered to be the best online bingo software found anywhere in the world. What happened to this Canadian development company, we are not really sure, but certainly the toll that UIGEA took on the US online bingo industry, must have made a difference to their liquidity. This once state-of-the-art software business was compelled to file for restructuring. BDO Canada Limited were appointed as trustees to assist in this process and in the absence of any other key bidders for the business, a sale of the assets of Parlay has recently been completed in a transaction which closed on September 1st. The one and only bidder was M Projects Assets S.A.
M Projects Assets S.A bagged this business after entering into a credit lending agreement with Parlay earlier in 2011. A deposit in the amount of $100,000 was made with BDO as evidence of its intention to buy. Parlay has also agreed to borrow an amount of up to $500,000 from M Projects for draw down credit financing. In a court made decision, the sale of the assets of Parlay Entertainment was for no less than CAD$2.03million, which doesn’t seem very much in the online bingo scheme of things. However for the half-year ending June 30th, Parlay declared a net loss of $1.7million, which is down 58% year-on-year.
From Parlay Entertainment Inc; with a catch-phrase of “Where the World Plays Bingo” to this; seems to be quite a fall from grace. On January 24th 2011, they announced six new customer contracts for Parlay5 – apparently new and even more innovative software – however, no new client names were mentioned. This was obviously not enough to stop the company’s slide into decline and it just goes to show that once the rot has set in; in the online gambling industry, it is not easy to stop the downhill slide.
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