The UIGEA Takes its First Merger Victim
Online gaming software provider Chartwell and I-bingo solutions provider Parlay have called off the merger proposal announced on Aug. 30, 2006, citing market and regulatory concerns in the United States. "The continuing market uncertainty for the online and remote gaming industry generated by recent legislative actions in the United States has forced Chartwell to conclude that it will be unable to obtain a fairness opinion which supports the business arrangement of the share-exchange ratio," the companies said in a joint press release.
According to the terms set out in the letter of intent, which the companies signed in August, Chartwell was to acquire all of the issued and outstanding common shares of Parlay and would issue 0.75 common shares of Chartwell for each issued and outstanding share of Parlay. Assuming the transaction had been completed, Chartwell would have issued roughly 11.2 million common shares in exchange for the entirety of Parlay's issued and outstanding common shares, and it would have had an estimated 29.9 million issued and outstanding common shares at closing.
Additionally, Chartwell and Parlay had each agreed to pay a termination fee of CA$500,000 to the other party if the merger was not completed. And according to the release, Chartwell agreed to reimburse Parlay for a portion of its merger-related expenses.
Intralot Throws its Hat in the Ring
Greek gaming company Intralot is preparing to vie for Britain's new National Lottery license, which is up for renewal in 2009. According to London-based paper Telegraph, "senior industry sources" said the company will launch its license bid within the coming months. "Intralot is keen to come to the U.K. to be able to operate the lottery as part of its expansion plan," the newspaper quoted one senior unnamed source as saying. "A Greek team has been working on the bid for some time now and they are about to show their hand." The National Lottery Commission (NLC) later confirmed that it had been in discussions with Intralot, but that, as of yesterday, a formal bid had not been made. "There is no formal register now, and they are not required to give a statement of intent," a NLC spokesman said. "[The NLC] will not know until the 26th of January." So far, only two companies, Camelot, the lottery's current operator, and Sugal & Damani, an India-based lottery operator, have made clear their intentions to compete for the license, which spans 2009 to 2019.
Scandinavian Software Deals
Iceland-based gambling software provider Betware has announced an agreement with Danish state lottery Danske Spil through which Danske Spil will implement a new suite of Betware-developed bingo games. The games will run on Betware's gaming platform, which also hosts other games offered by the state lottery.
In a bit of a Pickle
Mifal Hapayis, the Israel national lottery and proud member of the European Lotteries, seems to have a slight problem. As reported by Haaretz, Mifal Hapayis has been hit by two cases of players who remarked that lottery machines did not match the printed-version prize lists. Mifal Hapayis, of course, says that this is impossible because, according to Chairman and CEO Shimon Katznelson, "we will maintain the highest level of security, in order to preserve our credibility, upon which our reputation is based." Mifal Hapayis is looking into interactive selling and distribution channels, over the Internet, cellular networks and television.
Online Lotto in NZ a Distinct Possibility
The New Zealand Herald reported on Oct. 29 that Lotto tickets could soon be available on the Internet. The NZ Lotteries Commission was set to make an announcement, as chief executive Todd McLeay told the paper that since many customers use the Internet in all aspects of their lives, the move would be "a natural addition to the online Kiwi experience."
He emphasized that the commission would work to ensure the appropriate safeguards were in place, but problem gambling groups fear online lotteries will lure vulnerable gambling addicts into uncontrolled debt.
The Commission expects to start discussions with regulators next year to make the online products available, but any move by the Commission would have to be first approved by Internal Affairs before being given final approval by Internal Affairs Minister Rick Barker.
A spokesman for Barker has said that, as far as he is aware, the minister has not indicated interest in Lotto going online.