Dublin-based online gaming specialist Cryptologic is planning to use its cash-rich balance sheet to fund further expansion in Asia, the group said yesterday.

The London, New York and Toronto-listed group announced that it had taken a "significant minority stake" in Singapore-based Mikoishi Studios, which develops games for internet, consoles and mobile devices.

Cryptologic said the move was part of its increasing focus on Asia, which president and chief executive Javaid Aziz predicted would become the dominant e-gaming market in the long term.

The deal announced yesterday gives it the option of taking the outstanding equity in Mikoishi, and will be looking for further acquisitions in the region.

The group had cash balances of $84 million at the end of the three-month period to September 30th, and is debt-free.

Cryptologic primarily develops software and services for online casinos and poker.

Third-quarter results, also released yesterday, show profits suffered year-on-year as a result of a US ban on internet gambling. However, it said it expected to restore profitability to previous levels and that quarter-on-quarter growth this year has been strong.