GMS Entertainment to develop real-money and online gambling titles
Zumba Fitness publisher Majesco Entertainment has established a new company to pursue online casino gaming.
GMS Entertainment will be made up of the acquisition of real-money and online gambling developers Orid Media and PariPlay.
Majesco will invest between $3.5 to $4.5 million in the new business, called GMS Entertainment Limited, depending on the new firm’s future financial performance. A 50 per cent stake in the firm will also be held by the founder or Orid and PariPlay.
Majesco CEO Jesse Sutton has been named chairman of the new company.
"I am incredibly excited about this opportunity in the fast growing online gaming market and partnering with these talented individuals," said Sutton.
"During this transition year in console gaming, we have been actively exploring emerging growth opportunities in the social and online casino gaming industry to supplement our existing business. Entering the market through this partnership allows us to participate in a rapidly growing market segment and position the company for longer-term growth as more jurisdictions move to legalise real money online gaming.
"The complementary skills and abilities of all involved are expected to result in a successful venture."
The formation of GMS Entertainment comes after Majesco reported a poor financial performance in 2012, resulting in a number of redundancies and studio closures.
The publisher blamed a weakness in demand for products on current generation consoles, and the questioned how popular next-gen consoles would be among consumers.