CYOP Systems, a software company that develops and provides online skill-games, poker games, and a variety of services for the online gambling industry, has announced the formation of a UK based subsidiary, Red Felt Software Ltd.

After new legislation was introduced in the UK that promised to strengthen and improve regulation of the gambling industry, CYOP’s move to register Red Felt Software in the UK just made good business sense. CYOP Systems, expects that the ever-expanding popularity of online poker will contribute to the success of Red Felt Software, which is intending to offer poker software as its product.

CYOP’s launch date for the poker game software was originally set for May 1, 2005 but a decision was made to delay the launch date in order to be certain that product testing was complete and that the product was market ready. CEO of CYOP Systems, Mitch White, commented “ We expected to launch our Poker game on May 1, 2005, however, we have made the decision to delay this some to ensure it is 100% market ready with beta testing complete, translation complete and all integration issues resolved prior to a launch and marketing of the SINA network”.

Statistics on online gambling definitely gives one reason to believe that CYOP and its London subsidiary will do nicely. Online poker sites alone generated approximately $2 billion in revenues last year, which is equivalent to 40% of the gambling revenues generated last year on all of Las Vegas strip. There are an estimated 1.7 million online gamblers with about 150,000 people playing on any given day, according to Poker Pulse, a company that tracks the online poker market. The online gambling rate has risen at approximately 30% a year. These figures as well as CYOP’s plan to launch the first online poker site in ASIA, has the company feeling very confident about the future of its product and CYOP’s position in the online gambling marketplace.