Interactive Systems Worldwide, Inc. (ISWI) and Global Interactive Gaming, Ltd. (GIG) announced Monday the signing of a deal through which the two companies will co-launch the world's first consumer-oriented, fully interactive betting system for Digital TV (iDTV).
The agreement comes just months after ISWI granted GIG an exclusive license to market, distribute and use its interactive SportXction software, technology and patents on the Internet and interactive television, as well as through wireless delivery modes, for contests and wagering on sporting events worldwide.
GIG is hoping the updated agreement to ISWI will propel it to the top of the interactive wagering marketplace.
"Our aim is to become the world's leading interactive gaming company on all digital entertainment platforms. We are already in advanced discussions with all U.K. iDTV operators and expect to announce our first partners very soon," Cees Zwaard, CEO of GIG Ltd., said in a statement.
Zwaard says his company, through the agreement, will be the first to incorporate live television sports with betting options from the viewer's home.
"Digital TV broadcasters realize that their future is based upon adding compelling revenue generating services to their TV programs," he said. "GIG is the first company to effectively combine the thrill of live sports transmissions, with a consumer-oriented, low-stakes interactive betting system that's a natural extension of the viewed event."
Zwaard also says that backing from Prisma iVentures, part of Germany's KirchMedia, will give GIG access "to all the resources of the world's premier sports rights and marketing agency and can offer a unique, turnkey solutions to a digital broadcaster."
iDTV (cable, satellite or terrestrial) has been identified as the first platform that will achieve seamless integration between GIG's interactive betting service and the live TV broadcasts of sporting events. GIG also plans to provide its service via Web-enhanced TV, broadband Internet and 3G mobile handsets.
Adding to their global approach as a leader in the interactive TV marketplace is the ability to adapt the platform in different countries, languages, currencies, delivery platforms and sports. In countries that don't allow gambling, for example, GIG will offer contest-oriented products.
With the system, bettors will be able to watch a live sporting event and bet on numerous propositions or make side bets as the event unfolds. The system is controlled by the viewer using simple on-screen menu commands driven by the TV remote control handset buttons, just like the electronic program guides already accepted as a feature of all iDTV services.
The system is set up so that once a punter activates the platform, the live game takes up one-quarter of the screen. The remaining three-quarters of the screen are full of constantly updated wager propositions and navigation functions.
The system runs in real time with a live sports broadcast. GIG will initially launch the system to enhance live soccer broadcasts, but will quickly expand to include Formula 1, golf, Rugby Union, Rugby League and cricket.
Although the venture will seek global dominance, Zwaard says the initial focus will be on the United Kingdom and Europe, where interactive television has caught on more than it has in other corners of the world.
"In completing our market analysis, we believe there are some very noteworthy statistics which show our compelling market opportunity," he said. "Datamonitor estimates that 82 percent of the U.K. population has placed a sports-related in the past two years, while sports and event betting is forecasted to reach $10 billion in revenues by 2002. ABN AMRO projects that iDTV will be worth $2.14 Billion by 2004 and by that time 15 million U.K. homes (60 percent of all UK households) will subscribe to iDTV services."
SportXction, the patented technology platform developed by ISWI, uniquely links a broadcaster's consumer-friendly iDTV front end with advanced wagering software.
By delivering real-time, screen-based betting and facilitating frequent, but relatively small wagers, GIG wants to enable TV viewers to use their knowledge of their favorite sports to place wagers on the outcome of specific events, such as a penalty shot on goal in a soccer game, a put attempted during a golf tournament, a serve made in a tennis match or a pit stop during a Formula 1 race.
In addition to ISWI's software, GIG's relationship and backing from the Kirch Group provides an invaluable asset. GIG can call upon the experience of other companies within KirchMedia, including KirchSport, which owns broadcasting rights to events such as the 2002 and 2006 FIFA World Cup and Wimbledon Tennis Championships 2001, and is also a majority stakeholder in Formula 1motor racing.