BETonSPORTS acquires MVPSportsbook, Player Super ...

BETonSPORTS acquires MVPSportsbook, Player Super Book and V-Wager for a maximum consideration of US$37m and announces Board change

Wednesday, December 28th, 2005

BETonSPORTS plc, a leading US and Asian facing online sportsbook, casino and poker business, announces the acquisition of several online sportsbooks and casinos trading principally under the names MVPSportsbook, Player Super Book and V-Wager.

The business is mainly conducted through the internet and will be integrated into the existing BETonSPORTS infrastructure in Costa Rica and Antigua. The acquisition also brings additional executive management and marketing expertise and enhanced channels for the US market.

The purchase consideration to be paid for the business and the value attributable to the assets comprises an initial consideration of US$20.2 million, to be satisfied on completion of the acquisition as to US$15.2 million in cash and the issue of 2,178,744 ordinary shares of 1p each in the capital of the Company (the "Consideration Shares") as well as deferred consideration of up to US$16.8 million to be paid in cash depending on the profitability of the business for each of the 4 years coinciding with the Company's financial years ending on 4 February 2007 and thereafter. The maximum total purchase consideration for the business is US$37 million.

The historic profit before tax to 30th September 2005 (unaudited) of the businesses being acquired was US$3.3 million.

David Carruthers, CEO of BETonSPORTS plc, said "This represents an exceptional opportunity to bring well respected brand names into our family and to integrate with our existing businesses seamlessly and using our existing infrastructure. At the same time, the acquisition extends our cross selling opportunities and further strengthens our management team with US facing sports betting expertise. This transaction demonstrates the Company's commitment to consolidation within the Industry and shows our continued confidence in the growth opportunities of the US market.

We also confirm that, as widely reported the NFL sports betting margins in the US have been adversely affected recently as a result of a large number of favourites winning. However, the Company expects that these margins will follow the trend of earlier years and return to normal levels during the balance of the financial year, in which case the results will be in line with expectations. However if margins do not follow the trend of previous years then the outcome will be below those expectations. Importantly gross win % margins in all other sports are ahead of last year and the key business performance indicators of new customer acquisitions, cash receipts and active customers remain encouraging."

Application has been made for the Consideration Shares to be admitted to trading on AIM and it is expected that admission will become effective on 4 January 2006.

Following a review of Board Responsibilities, Craig Lapsley will step down from the Board from today. He will continue to be employed by the Company and will perform an integral role as Company Secretary. Richard Creed has been appointed interim Finance Director while the search for a full time Finance Director is being undertaken.

Contacts:

David Carruthers
Chief Executive, BETonSPORTS plc
001 506 234 4515

Wall St. Bets on Gambling on the WebMonday, Decemb...

Wall St. Bets on Gambling on the Web

Monday, December 26th, 2005

By MATT RICHTEL
NYTimes.com

Internet casinos are outlaw operations in the eyes of the federal government, but they look like solid investments to many of Wall Street's largest firms.

Blue-chip investment houses like Goldman Sachs, Merrill Lynch and Fidelity now hold hundreds of millions of dollars in shares of online casinos and betting parlors, which are publicly traded on the London Stock Exchange and headquartered in places like Costa Rica or Gibraltar.

The growing participation by American investors underscores a striking gap between the federal law-enforcement position on online gambling and the realities behind what has emerged as a booming business.

It also highlights the difficulty of policing cross-border activity in the Internet age at the same time that electronic commerce and a global economy are creating fast economic partners across national boundaries.

Legal experts are divided over whether American investors and the investment houses that operate mutual funds could themselves be seen as criminally liable for their actions by providing financial backing for offshore casinos. To be sure, it is not uncommon for Americans to invest in overseas companies whose operations may be considered illegal or unacceptable here, from sweatshop manufacturers to European energy producers that do business in Iran.

The difference with Internet gambling is that the activity takes place on domestic shores - with Americans placing bets online using their home computers - and the Justice Department has stated clearly that the operators are violating American law.

Jaclyn Lesch, a spokeswoman for the Justice Department, said that the agency considered online gambling illegal but declined to "comment on the liability or hypothetical liability of a company or an individual."

But Internet gambling analysts and company executives said that the investments highlight how widely the federal policy is, in essence, being ignored.

Millions of Americans use the Internet to play games like poker, blackjack and roulette, or to place wagers on sporting events. Online casinos advertise in magazines and on cable television while filling big billboards in Times Square and other places where crowds congregate. Celebrities like Jesse Ventura, the former governor of Minnesota, hawk their wares.

Full story in New York Times >>>

Gaming Investing

BETonSPORTS acquires MVPSportsbook, Player Super ...

Wall St. Bets on Gambling on the WebMonday, Decemb...