I-Gaming Investors Corner (Dec 18 - 22)

Investrend Comments on Chartwell's Stock
Investrend analysts compiled a year-end list of stocks deemed most likely to experience above average performance. To be considered for this selection, the criteria included demonstration of rapidly growing financial results, good management, and capital. Among the companies chosen was software developer Chartwell Technology Inc. According to Investrend, in just two years Chartwell has established itself as a recognized supplier of casino software to the Internet gaming industry by successfully selling 18 licenses and two major accounts--Victor Chandler International (U.K.) and Harrah's Entertainment (U.S.). Revenues are estimated at US$5 million for October 2001 and US$9.4 million in 2002. In addition, the analyst estimated that Chartwell's earnings per share will be US$0.10 in 2001 and $0.34 in '02. Chartwell has filed an F-20 for U.S. trading.

On-Point Shareholders Meeting Held
During its recent shareholders meeting, On-Point Technology Systems, Inc. (ONPT) elected its board of directors: Frederick Sandvick, John Olbrich, Keith Cannon, Gordan Graves and Michael Carlton. Carlton was added to the board after On-Point formed a strategic relationship with his company, Victor Chandler International Limited (VCI). As part of the meeting, shareholders also ratified and approved an increase in the number of authorized shares of On-Point's common stock and in the number of authorized shares under the company's employee stock option plan. "Over the last 90 days, since the termination of our discussions to be acquired by GTECH Corp., the company has been aggressively re-positioning itself better leverage its management expertise, its technological property, its financial resources, and its international relationships in order to enable On-Point to maximize shareholder value," said Sandvick, On-Point's chairman and CEO. "Last year we had intended on maximizing shareholder value through the sale of the company to GTECH Corp. However, in July of this year those plans were terminated and, as a result, we have refocused our attention on re-positioning the company to take advantage of the current and new market opportunities that we believe are available and which we believe are now the best means to maximize shareholder value. We have made this decision because we believe On-Point has tremendous value not currently reflected in its current per share market price."

Moratorium Could Cost $100 Million
Online casino operators in Australia will sacrifice more than $100 million if the country's moratorium on Internet gambling expansion leads to a permanent ban on. In a recent Sydney Morning Herald article, Australian Casino Association Executive Director Chris Downey called the moratorium "financially disastrous," because numerous e-casinos located Down Under have been forced to shut down. Six of those sites were operating or getting ready to operate from Tasmania. Among companies affected are Federal Hotels, which spent $20 million building its online casino, and Queensland-based Gocorp, which spent $30 million on its online casino. "The operators are still of the belief that putting in place a nationally regulated plan is far more preferable to a ban," Downy said.

Hilton Sells Casinos
Hilton Group Plc (HGI.L) has sold off its 29 casinos, located mainly in the U.K., to bingo hall operator Gala Group for £235.3 million, including £2.7 million of debt. In a separate transaction, the company has also sold its Meadows racetrack and four off-track betting operations to Canadian racetrack operator Magna Entertainment for £36 million in cash and shares. So far, Hilton has no plans to part ways with its Net betting operations, company officials have said. Hilton's stock price rose 5.5 pence on Friday after the sales were announced, closing at 210.5 pence.

Starnet Continues Special Shareholders Meeting
Once again Starnet Communications International Inc. (SNMM) has scheduled a continuation of its special meeting for shareholders. Following the adjournment on December 21, a third meeting has been schedule on January 19, 2001 in order to solicit additional proxies on the proposal to reorganize into an U.K.-based parent company.

New Financial Advisor for PlayandWin
PlayandWin Inc. (PWIN) announced that Simmonds Capital Limited has been selected to provide the company with financial advisory services, to source acquisitions, to enhance current management and board and to facilitate up to $5 million in financing. "The addition of the Simmonds team will strengthen our platform for growth via acquisitions and strategic partnerships," said Stewart Garner, company president. "Our recent trip to Arizona was an overwhelming success in presenting Racingo (R) to many racetracks and jurisdictions we had yet to visit. We are extremely enthused about our immediate and long term goals and ambitions."

ENIC Is in a Spending Mood
Officials from ENIC Plc (ENI) told Nothing Ventured that the company is seriously considering purchasing Sporting Index Holdings Plc. An announcement is expected soon. In another move, the company's wholly-owned subsidiary, Enic Sports Plc, has conditionally agreed to acquire 27,356,649 ordinary shares of Tottenham (representing 26.9 percent of its issued ordinary share capital) from Amshold Limited for 80p per share. The acquisition will increase ENIC's holding in Tottenham to 29.9 percent of its issued ordinary share capital. Amshold has also granted ENIC Sports an option to acquire, at any time within 18 months after completion, some or all of its remaining 13,396,026 Tottenham shares (representing a further 13.2 percent of Tottenham's issued ordinary share capital) at 80p per ordinary share. For a further 18 months, ENIC has the right of first refusal to acquire any Tottenham shares retained by Amshold at a price no less favorable than terms for which Amshold offers ordinary shares to a third party.

"This investment is an important step in the development of the sports businesses of ENIC. We believe that the long term profitability and capital value of Tottenham can be significantly enhanced through further exploitation of media and sporting rights associated with the club," commented ENIC Managing Director Daniel Levy. "Tottenham is a major British football club with a prominent sporting heritage. We are firmly committed to improving Tottenham's commercial viability as one of this country's top football clubs. We believe that it can regain its position as a significant contender in both domestic and European competitions."

Silicon Gaming, IGT Merge
On December 19, Silicon Gaming Inc., (SGIC) and International Game Technology (IGT) announced that they have entered into a definitive agreement in which Silicon would be merged into a subsidiary of IGT as part of a cash-for-stock merger valued at nearly $45 million. The deal needs stockholder approval, gaming regulatory approvals, third-party consents and the satisfaction of other closing conditions. Either party can terminate the agreement if the merger isn't consummated by May 30, 2001. As part of the agreement, Silicon has agreed to dispose of its shares in WagerWorks Inc., a majority-owned subsidiary of Silicon that has developed software for Internet gambling sites.

ISWI Announces Stock Buyback
International Sports Wagering Inc. (ISWI) will be repurchasing up to $500,000 in company stock to enhance shareholder value. "We believe that at its present price, under four times projected fiscal 2001 earnings, and with our $250 million, 14-year SportXction^TM System software licensing agreement with GIG, the stock is greatly undervalued. The company now has an excellent opportunity to provide for company obligations, increase the value of its investors' holdings and demonstrate our extreme confidence in the company," said Barry Mindes, ISWI chairman and CEO.

Youbet Buys Back Debt
After losing $10.8 million for the year ending Dec. 31, 1999, officials at Youbet.com (UBET) announced that the company had purchased back all remaining senior convertible debt, valued at $22.6 million for $13.5 million. Management also foresaw a $7.7 million gain for fourth quarter 2000.

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