Gambling Directory

Gaming Internet loses but gains

11/4/2000

Gaming Internet reports losses but wins in the market

Online casino and sports gaming group Gaming Internet PLC reported pre-tax losses of ?8.53 million, according to figures revealed in the company's interim results for the six months ending 30 June. The figures showed turnover during the period at ?1.29m. These results compare to a ?342,000 pre-tax loss and ?67,000 turnover in the previous six-month period.

The company includes online businesses such as Zap Casino, greyhound racing operation GoBarkingMAD and sports games site SportsMAD.
However, despite the reported losses, the company appears to be winning. Richard Kleiner, finance director, said Gaming Internet?s cash balance of ?2.1 million at the end of June would be enough to finance the growth of its Zap Casino and SportsMAD Internet gaming services. However, he said the company was considering a number of options to fund the full development of GoBarkingMAD. The company is considering a range of options to fund the full development of its greyhound betting service, due to be launched next year.
GoBarkingMAD has signed five-year exclusive media rights deals with 26 greyhound tracks, with an option for a further five. Planned to be fully functional by next year, coverage will encompass 75,000 races across all continents and time zones, broadcast every five to 10 minutes of the day, seven days a week. The service will include an integrated global tote betting system and will be accessible via digital and interactive television, WAP mobile phones and 3G technology.
Gaming Internet has reached an agreement with Pure Entertainment Games PLC to offer a selection of browser-based sports games and an online casino on the freeloader.com website. The two-part deal involves Pure Entertainment hosting five ?free-to-play? browser-based games, supplied by SportsMAD, on its freeloader.com website. Users will then be able to link through to the SportsMAD website and, for a small charge, play to win cash prizes. Freeloader.com will receive a percentage of receipts associated with the users it brings to SportsMAD.
Freeloader.com will also offer a download of Gaming Internet's ZapCasino online gambling product and receive a percentage of the takings associated with the users it brings to ZapCasino.
Pure Entertainment's chief executive Harry Holmwood says: ?The benefits for freeloader.com of this type of deal are obvious - we get excellent new content for our site that will extend our appeal to an even wider audience?.We also get a second and proven revenue stream in the form of online gambling and betting which will compliment the revenues we receive from our unique targeted advertising."
During the six months, Gaming Internet also acquired a controlling interest in global thoroughbred racing web site www.racingnetwork.co.uk., and continues to be developed as a database of horses, trainers and jockeys in the UK.
SportsMAD only launched its first five games, based around football, tennis, cricket, golf and Grand Prix racing in June, so has not had a chance to prove its revenue potential yet.

A turnover of ?1,290,000 from its various divisions, including Zap Casino, GoBarkingMAD, SportsMAD and RacingNetwork.co.uk is promising in light of the fact that Zap Casino took ?572,000 in June alone, suggesting it is at the beginning of a steep growth curve. The company?s push onto new platforms is to be aided by its new chief executive, David Sanderson, previously of Carlton Digital Sales. Gaming Internet's chairman Nigel Robertson stated, ?The board remains confident that the development of gaming products will enable the business to develop and attract a global customer base across all digital channels.?

Gambling Directory - Health