AWI Finds Buyer for Mega$ports

2 February 2001
After a 13-month legal and regulatory odyssey, American Wagering Inc. is nearly ready to sell off its Mega$ports subsidiary in Canberra, Australia.

Forward Publishing, which is purchasing Mega$ports, has just completed due diligence of the site and made an A$250,000 non-refundable deposit that will remain in trust until the sale is completed.

As soon as Forward Publishing completes the necessary probity procedures in the Australian Capital Territory, where Mega$ports is licensed, the deal can go through.

"We are pleased to have a qualified buyer for the Mega$ports (ACT) subsidiary," commented Vic Salerno, AWI's Chairman and CEO/COO. "The sale will close a chapter with the Nevada Gaming Authorities and foster the company's long-term plan of focusing on our core domestic business competency. When completed, the sale will also provide additional cash flows and further the return to profitability reported in the previous quarter.'

In December 1999, the Nevada State Gaming Control Board filed a complaint against AWI for allegedly taking a bet from investigators located in Nevada, seriously endangering the status of the company's Nevada sports betting license. Last July, AWI signed a stipulation agreeing to pay a $10,000 fine and sell off the Australian Internet betting site within 180 days. Part of the agreement included extensions to the time-period, if necessary, for the AWI to complete a sale.

The Nevada Gaming Control Board has given its approval to the first of three possible 60-day extensions to conclude the divestiture of the subsidiary. The time extension will allow Mega$ports to remain fully operational while Forward Publishing completes the probity and gaming license process.