Access Systems Postpones Float - The Sydney Morning Herald reports that Australian gaming software group Access Gaming has been forced by the volatile technology to cancel its $45 million float. The company, underwritten by Deutsche Bank, deferred its listing Thursday after its institutional offer closed short of its targets. Managing Director Stephen Mulcahy says he will attempt to float the company again later in the year when the market settles. The company planned to sell 22.5 million shares at a maximum $2 a share. Had the float gone successfully, the company would have been capitalized at $200 million.
Crypto Shares Sink on Nasdaq - Life on the Nasdaq has so far been a downward spiral for gaming software provider CryptoLogic Inc. The company's stock began trading in March at $41.50 and has gradually dropped since then. Last Thursday, it sunk as low as 17.0625 and closed at 17.625, its lowest closing price yet.
Sports Internet Shares Skyrocket - Sports Internet, a sports Internet and gaming company, saw its shares rise from 80p to 712.5p after the company confirmed that it could be nearing an offer. The favorite to take over the sports portal, according to vnunet.com, is BskyB.
American Wagering Issues 10-K - American Wagering, Inc. (BETM), the licensed operator of a licensed Australian Internet sports betting service and several land-based sportsbooks in Nevada, has released its 10-K (annual report) for 1999. Revenues for the fiscal year ended January 31, 2000 were $13,379,000, an increase of $3,487,000, or 35.3 percent from revenues of $9,892,000 for the fiscal year ended January 31, 1999. The company attributes the increase to additional systems revenues of $1,772,000, additional wagering revenues of $1,644,000, keno revenues of $38,000 and additional casino revenues of $33,000. Operating loss before depreciation and amortization was $508,000 which increased by $681,000 or 393.6% for the fiscal year ended January 31, 2000, compared to income of $173,000 for the fiscal year ended January 31, 1999. The decrease was primarily due to an increase in operating costs of $4,168,000 or 42.9 percent over operating costs of $9,719,000 for Fiscal Year ended January 31, 1999.
Revenues from wagering were $7,734,000 for the fiscal year ended January 31, 2000, an increase of $1,644,000 or 27.0 percent from revenues of $6,090,000 for the fiscal year ended January 31, 1999. The increase was primarily due to a 11.0 percent increase in handle (the total amount wagered at the company's sports and race books) and an increase in the company's overall net win percentage (revenues divided by handle). Handle of $120,305,000 for the fiscal year ended January 31, 2000, increased by $11,893,000 from handle of $108,412,000 for the fiscal year ended January 31, 1999. The company's net win percentage was 6.1 percent in fiscal year 2000 an increase of 13.0 percent from 5.4 percent in Fiscal Year 1999. The increase in handle was primarily attributed to Mega$ports Australia, which was in operation for the full year of fiscal 2000 and increased its customer base.
The increase in handle was offset by a negative net win percentage experienced by Mega$ports Australia on sports betting for fiscal year 2000. Race pari-mutuel wagering revenues decreased $85,000 or 43.1 percent from $197,000 in Fiscal year 1999 due to decreased volume of race betting. Pari-mutuel
sports wagering, which was discontinued by the company in March 2000, increased by $219,000 from the prior fiscal year. Wagering segment operating costs of $6,211,000 for the twelve months ended January 31, 2000 increased $1,580,000 or 34.1% from operating costs of $4,631,000 for the Fiscal Year ended January
31, 1999. Operating costs increased primarily due to the full year operation of Mega$ports Australia and the inclusion of Mega$ports, Inc. on a consolidated basis for fiscal year 2000. The company says Mega$ports (ACT) experienced a negative net win percentage during Fiscal year 2000 principally due to unfavorable results of sports wagering.
Annual costs for '99 include direct costs of $9.88 million; research and development costs of $833,000; selling, general and administrative costs of $3.17 million; depreciation and amortization expenses totaling $815,000.
dot com Announces First Quarter 2000 Results - dot com Entertainment Group, Inc., a specialist in Internet gaming technology systems, has released its first quarter results. Revenues increased to $305,910 for the quarter ended March 31, 2000 from $66,049 for the quarter ended March 31, 1999. The company attributes the growth in growth in revenues to higher royalties and support and maintenance charges and the assessment of license fees to new software licensees who have taken delivery of dot com technical systems in the current quarter. Net income increased to $24,395 or $0.002 per share in the first quarter of 2000 from $885 or $0.000 per share in the prior year. Operating expenses increased to $264,515 for the quarter ended March 31, 2000 from $65,164 for the same quarter in 1999. The increased operating expenses reflect the significantly higher level of activity at the Company including the addition of 9 employees and new development offices. On March 31, 2000, the company had working capital of approximately $650,000 as compared with approximately $150,000 at December 31, 1999. The company says the increase primarily reflects the proceeds from a private placement offering. Total assets increased to $1,210,811 from $705,638 at December 31, 1999. Net cash used in operating activities declined to approximately $2,000 from $99,000 in the prior year
During the quarter, the company introduced a major upgrade to its Windows based Internet bingo technology and commenced the development of a full suite of Internet casino products, which will be available in Java to licensees in May and June 2000. The company also commenced the development of a FLASH Bingo game, which is complete and is presently being tested in beta form for availability in May 2000. The addition of Flash technology makes dot com the only technology company to offer its award winning Bingo technology in Windows, Java and Flash.
The company has also increased the number of licensees and has introduced supplementary software technologies, such as its proprietary Bingo Network Program, which have been successfully sold to licensees. The company expects to realize substantial growth in FY 2000 as its business model continues to be executed and additional technology systems are developed and made available to licensees.
E-Vegas Files 10-K - E-Vegasgaming.com Inc. announced that its stock has resumed trading under the symbol EVCM on the OTC Bulletin Board in accordance with the filing of the Company's 10K on April 27, 2000.
Virtual Gaming Enterprises Sheds its E - Online casino operator Virtual Gaming Enterprises has had the E dropped off its symbol. The company has begun trading again under the symbol VGAM, now that it's fully compliant with the NASD and SEC in terms of being fully reporting. The company additionally announced that its audit has been completed and that Forms 10KSB and 10QSB have been filed with the SEC and are available on the EDGAR System today. President and CEO Virgil Williams called the filings "the most important step to achieving the milestone of 'Full Reporting Status'."
A New Japanese Market - The Associated Press reported Wednesday that the Nasdaq Japan stock market will start taking applications next Monday from companies wanting to list their shares on the new exchange. The new market is a joint venture between Osaka Securities Exchange and Nasdaq Japan Planning Co., the alliance that Nasdaq formed last year with the Japanese software and Internet investment firm Softbank. Trading will begin June 30 in Osaka.
OmniSky Puts Trading in Your Palms - Day traders now have a new option for mobile trading. OmniSky Corp. of California last week began offering a wireless Internet service for users of Palm V handheld devices--a service that costs $39.95 a month. Among the 167 companies that have distribution agreements with OmniSky are E-Trade Group Inc., Fidelity Investments, DLJ Direct, and Ameritrade. Through previous deals E-Trade enable customers to use its website from two-way phones, pagers, and handheld devices. The company will eventually make its site accessible from digital wireless phones. OmniSky says it will eventually extend the service to other brands of handheld devices.
Regulators Closely Eye Day-Trading Firms - If you're among the unfortunately ignorant lot who don't recognize the potentially catastrophic pitfalls of rabid day trading, consider that analysis commissioned by the SEC and state securities regulators released last summer found that 70 percent of all day traders end up losing money. A major part of the problem, according to regulators, is the fact that traders are grossly mislead by day-trading firms that promise quick riches and make improper loans to keep customers trading. As a result the SEC, the FTC and the CFTC are starting to drop the hammer. They recently reached settlements with 14 firms for making claims that the trading strategies and systems they sell can bring investors easy money with little risk. "The Internet provides many benefits to the investing public, but it can also provide a means for some Web operators to make misleading or fraudulent claims about their investment strategies,' William Rainer, chairman of the commodities oversight agency, told the Associated Press. "Today's actions ... should help remind consumers to be very skeptical when someone promises amazing investment profits with little or no risk.'