Investors Corner (Dec. 10-14)

I-gaming software developer iCrystal Inc. (ICRS.OB) is noticing an upswing in business despite the economy's overall lack of spunk since the terrorist attacks on America, said the company's chairman and CEO, Larry Hrabi.

"Following Sept. 11, we noticed a much greater number of people turning to online gaming and, in particular, we noticed an influx to our licensed sites," he said. "We are expecting to maintain our growth for the remainder of the final quarter of 2001 and exceed it into the first quarter of 2002."

The company said this week that it has earned a profit in its third quarter. The company's revenue increased $92,676 from the second quarter to the third quarter, from $182,500 to $275,176 respectively.

Lottery Operator Raises $150 Million

GTECH Holdings Corp. (GTK), a lottery system operator, raised $150 million in a private sale of 20-year bonds convertible into stock, the company said Friday.

Reuters reported that the company, which is based in West Greenwich, R.I., is planning to use the funds as well as money it has borrowed to pay debt and back up $40 million in common stock. On Tuesday, Fitch, a financial ratings company, had assigned the $150 million in bonds a rating of "BB+" and said the company's rating outlook is stable.

TAH to Suffer from Anti-Gaming Attitudes, Analysts Say

Financial analysts are saying social attitudes in Victoria could have a significant impact on Tabcorp's (TAH) bottom line, since about 57 percent of the group's earnings before interest and taxes is derived from the state's gaming industry.

According to Australian news Web site Egoli, several social facts present in the state don't bode well for the company's financial future. Among them: Susan Davies, an independent MP in the state, recently introduced a bill that would ban ATMs and smoking in gaming rooms, ban the use of checks at casinos and require that poker machines turn off for 10 minutes after 90 minutes of use. The bill will likely receive serious consideration, Egoli reported.

Other developments as well may indicate the tide of public opinion is turning against gambling. A Productivity Commission report in 1999 showed that 40 percent of Australians gamble regularly and 15 percent of regular gamblers are problem gamers--statistics that are turning gambling into a social issue in Victoria. In addition, the state's religious leaders are asking the government to eliminate half of Victoria's 30,000 poker machines.

Fund Raising Success for Gaming Insight

Gaming Insight plc (GIN.L) said last week that it successfully placed shares to raise £900,000 through issuing 10 million new ordinary shares for a price of 9 pence each. The British company, which operates four Internet gambling sites, said it will use the extra cash for ongoing development as part of its continuing funding requirements.

In addition, the group issued options for new ordinary shares to some of its directors. David Sanderson was granted one million options, giving him a total of 3 million options in the company; Ian Hayes was granted 1.5 million options, for a total of 2.05 million options; and Ian Ryden received one million options, bringing his total to three million.

Three and a half million more options were granted as an incentive program for staff and company consultants. The options were given on Dec. 4 for 11.75 pence per share and are valid for the next ten years.

ecorp Dropped from S&P/ASX 200

Standard & Poor, an international financial ratings agency, announced changes to its Australian Stock Exchange indices. The changes are effective after the end of the business day on Dec. 31. Among those companies ousted from the S&P/ASX 200 index is ecorp Ltd. (ECP.AX), Publishing and Broadcasting's I-gaming subsidiary.

Report Released

Interactive Systems Worldwide Inc. (ISWI) released its end-of-the-year report this week, and it reflects a net income increase to $5.34 million and earnings of 56 cents per share verses a loss of 10 cents per share at this time last year. Meanwhile, revenue increased more than 200 percent from last year to $4.75 million.