Crypto Stock Reacts to Net Betting Bill
Cryptologic Inc.'s (CRYP) stock price climbed during the later part of the week after the U.S. Congress dropped a provision against Internet betting from its anti-money laundering bill.
After beginning the week with a closing price of $14.95 on Monday, Crypto's stock swelled to $16.61 on Wednesday, the day the Financial Anti-Terrorism Act of 2001 passed in the U.S. House of Representatives without a proposed section that would ban bank instruments from being used to pay for Internet gambling.
On Thursday the stock rose to about $17.20 before closing at $14.45. On Friday Crypto ended the day at $15.66. On Wednesday Crypto stock sold nearly 600,000 shares; on Thursday and Friday it sold more than a million shares each day.
Jean Noelting, Crypto's chief executive, told Reuters he was pleased with the turn of events.
"Internet gaming is here to stay. There's no country in the world that has been successful in any kind of prohibition at this time," he said. "It's a win for regulations, it's a win for the development of the industry, and you can be sure that companies like us will continue to work to make absolutely sure we have the strictest measures for preventing any kind of money laundering."
eLOT Files Chapter 11
On Monday eLOT Inc. (ELOT: OTC BB) filed for reorganization under Chapter 11 of the federal bankruptcy code in U.S. Bankruptcy court in the Southern District of New York.
The company has been evaluating its options since September, when it became aware that FreeWorldLottery, which it acquired through asset purchase and management agreements with PlasmaNet, may not generate revenue.
"To date we have received no revenues and it is unlikely we will receive any of the anticipated revenues from the FreeWorldLottery Web site," Ed McGuinn, eLOT's CEO, said. "We have been discussing with the principal bondholders a restructuring of our balance sheet, which would include a conversion of debt into equity."
The company plans to have its reorganization complete by early 2002. eLOT is an application service provider of Internet marketing and advertising technology for lotteries; it also offers online transaction and information systems to lottery operators, including the Jamaica Lottery.
TrackPower Buys Sportscalc.com
TrackPower Inc. (TPWR: OTC BB) said on Tuesday that it will acquire Sportscalc.com Ltd.
TrackPower, whose main product is a combined ATM and racing information kiosk, will buy all the outstanding shares of Sportscalc, a Web site that provides extensive sports statistics and trends. The company will purchase 5 million Sportscalc shares in all. Sportscalc's management and infrastructure
will stay with the company.
TrackPower has an exclusive agreement with Post Time Technologies Inc. for Post Time's RaceVision kiosk when the product is combined with an ATM.
PAF Parts with EGET Shares
Alands Utvecklings Ab, also known as the Aland Development Fund, is now the major shareholder in European Game and Entertainment Technology Ltd. Ab (EGET).
The Aland Development Fund on Oct. 10 acquired all of Alands Penningautomatforening's (PAF) shares in EGET. PAF was a founder of EGET; it offers lottery, casino and sports betting using EGET's WinOne platform.
Lars Porko, PAF's managing director, said the organization will now focus on its core business as a gaming operator.
"We completed a chapter of our evolution," he said. "PAF has achieved its objective to successfully extend its business to the Internet. We are now happy to reshape our relationship with EGET and continue in a close customer-supplier partnership."
Lauri Gorski, EGET's CEO, said the new arrangement will allow EGET to continue its relationship with PAF and at the same time stand as an independent supplier to the lottery industry with no ownership-based connections to the operators.
Preliminary Q3 Results for betandwin.com
Sports betting site betandwin.com (BWIN.BE) more than tripled its betting turnover in the third quarter of 2001 from what it was in the same period of 2000.
In its preliminary third quarter results, which were released Wednesday, the Austrian company said its betting turnover from Q3 in 2001 will be EUR 14.8 million, compared to EUR 4.7 million in 2000.
Betandwin.com garnered almost 38,000 users from July to September; it has almost 240,000 registered users in all. The entire third quarter results will be released Nov. 21.
Scientific Games Conference Call
Scientific Games Corp. (SGM) will hold a conference call to discuss its third quarter results on Oct. 23 at 10:45 EST. To participate, call 719-457-2634 15 minutes before the start of the call. A replay of the call will be available until 12 a.m. on Oct. 26. The replay can be heard by calling 719-457-0820; the reservation number is 521501. In addition, the call will be archived for 30 days on PR Newswire's Web site.
Reports Released
Bentley Communications Corp. (BLTY: OTC BB) released its annual report for 2001 this week. The company operates sports books, horse racing and bingo sites. Internet gaming software maker Cyrptologic Inc. (CRYP) reported its third quarter results. Revenue for the period ending Sept. 30 increased 32 percent to $10.7 million, compared to $8.1 million for the corresponding 2000 quarter.
Bentley
Communications Corp.(BLTY: OTC BB) - Annual Report
Cryptologic Inc.(CRYP) - Third Quarter Report