Virtue Fusion, one of the world’s leading developers and suppliers of internet bingo products, is closing down smaller bingo operators that use its services. Bingo Chest announced recently that is was closing its doors with immediate effects and Virtue Fusion has given notice to other operators that it is terminating its agreement with them. With the closure of Bingo Chest, Virtue Affiliates is also closing down as of the 14th October.

Virtue Fusion, which was acquired by Playtech Ltd in February 2010, originally offered the opportunity for brands to set up online bingo products for their customers but has since been pulling the plug on these relationships. Many brands will have be lured into the attractive propositions that Virtue Fusion offered and spent vast amounts of money only to have been let down by the software provider.

Bingo Chest launched in December 2008 and its demise is reported as being down to a lack of innovative promotions and interest to drive the customers, we have been in contact with other online bingo operators that are being forced to close down by Virtue Fusion.

It seems that Playtech Ltd are interested in pursuing relationships with their bigger clients such as Mecca Bingo, William Hill, Ladbrokes, Bet365 and Crown Bingo but have stone walled smaller operators in terms of innovations and opportunities and those that did not pull the plug themselves are not being given the choice to continue operating. Since taking over Virtue Fusion, Playtech have offered smaller operators the opportunity to merge with their bigger brands but the brands would have no say in how their customers are treated. In reality this was just a way of terminating the smaller players but keeping the brands players playing bingo on the Virtue Fusion network. Those that have declined face their bingo brand being shut down over the next few months.

From the customers point of view this is not in their best interests as it reduces competition and it stops them being able to play at their favourite brands. With the UK government looking to introduce new legislation in relation to taxes and licensing aimed at the online gaming operators, and Virtue Fusion terminating relationships with operators, we are likely to see a significant number of online bingo brands shutting their doors over the next 12 months.