GigaMedia said this morning that its Canadian operation, via its Kahnawake license, is "reliable and stable," following a report Monday suggesting the group could absorb a near-term revenue hit on the back of proposed changes in Canadian I-gaming regulation.
Earlier this month, Canadian MP Roy Cullen confirmed with IGN that he had drafted legislation that would, like the UIGEA, require financial institutions to block unauthorized Internet gambling transactions. The proposed bill has not been tabled in the House of Commons, the lower house of Parliament.
Regarding Monday's report, published by The Street, GigaMedia said it found the news source's view that the company could suffer near-term financial damage to be without basis.
On GigaMedia's quarterly conference call earlier this month, its chief executive, Arthur Wang, said the group saw "no possibility of that (Canadian government changing I-gaming regulation) happening in the near term."
Wang said the company was in the final phases of acquiring redundant licensure and operating facilities in Malta.
GigaMedia derives an estimated 70 percent of its revenue from selling software to online casinos, with most of that business tied to Ultra Internet Media (UIM), a Kahnawake licensee, which operates Everestpoker.com and EverestCasino.com.
GigaMedia does not hold an equity stake in UIM.