David Baazov Officially Quits Amaya; Company Q2 Results Show Increase in Profits From New Offerings

On Thursday, August 11, David Baazov (cover image), former CEO of Amaya officially resigned from all positions held by him in the company. In the wake of his exit, Amaya declared Rafi Ashkenazi, who was acting as interim CEO till now, as its Chief Executive.

The news was released by Amaya, just before the company’s Second Quarter (Q2) 2016 Earnings Conference Call on Friday, August 12. “I am proud of my contributions in building Amaya into the successful company it is today, and continue to be supportive of its strategy and management’” Baazov has said on his exit.

In response the company stated that, “Amaya thanks Mr. Baazov for his contributions to Amaya since its inception and through its rapid growth, and looks forward to Mr. Ashkenazi’s continued success in leading the execution of Amaya’s strategy.”

Rise & Fall of David Baazov

In a saga that could read like a corporate blockbuster, Baazov had almost single-handedly taken over the Rational Group in August 2014, raising money in a daring manner. The gamble paid off and Amaya became the largest gaming company, with PokerStars in its kitty. A range of drastic changes that affected rake increases, VIP programs and the introduction of non-poker games saw the site increase its profits.

But, Baazov came undone, when he was charged with ‘insider trading’ by the Quebec Autorité des marchés financiers (AMF), along with his brother and friends. Baazov stepped down on an ‘indefinite’ leave of absence, but the damage was irreparable. The incident happened at the time Baazov was in talks to take over Amaya himself.

Successful Changes at PokerStars Increases Revenue

Speaking at the meeting Rafi Ashkenazi announced that the company’s Q2 revenues had increased by 10% to $286 million or by an increase of 14% on a constant currency basis. Results show that the company’s poker revenues had dipped marginally, but its sports book and casino earnings were up by 89%.

Ashkenazi reported that the changes like VIP programs and rake increases, as well as introduction of casino games that had enraged regulars were in fact expanding the company’s revenue channels. He further added that the migration of Full Tilt into PokerStars had been successfully executed with players now in a larger pool using the latter’s software. Additionally the 2016 Spring Championship of Online Poker (SCOOP), which paid out $91 million in prizes, saw an increase of 19% in its rake, as compared to 2016.

No mention was made of Baazov, sending a clear indicator to shareholders that the company was doing fine without him.

Road Ahead

In recent times there has been speculation that other investors, including an Israeli have approached Amaya for a takeover, but nothing has been forthcoming officially yet. Any which ways, Amaya continues to be a potentially future-rich company with its assets like PokerStars and the current strategy of wooing new and recreational players into its fold.

As for Baazov, it is now being rumoured that his dreams of acquiring Amaya will be completely discarded and that he will dispose of his existing shares in the company in a clean break.