International Sports Wagering (Nasdaq: ISWI) has signed a seven-year license agreement with Alliance Gaming Corp. (Nasdaq: ALLY) for Alliance's Remote Access Verification Environment (RAVETM) technology.
RAVETM verifies the jurisdiction from which an online or telephone wager is being placed and identifies the bettor. It was developed to comply with current Nevada legislation regarding online gaming. It was designed to enable sports wagering to be conducted legally via computer or telephone from home within Nevada. ISWI's license is exclusive within the State of Nevada. The License Agreement is conditioned upon approval by the Nevada Gaming Authorities.
RAVETM technology was developed in a multi-year project conducted by Alliance Gaming in conjunction with telephone carriers and communication equipment manufacturers. This technology and the company's modified version of its SportXction(TM) sports wagering system for use from home have been submitted to the Nevada State Gaming Control Board for approval and they are currently under review. Neither the RAVETM technology nor its use for conventional sports wagering, or in combination with a version of ISWI's SportXctionTM system adapted for use from home PCs in Nevada, have been approved for use in Nevada, and may not be introduced for service until approval is obtained from the Nevada Board.
Under recently adopted regulations by the Nevada Gaming Authorities, effective March 1, 1999, race and sports wagering via computer or voice communications will not be permitted unless the placement of the wager from within Nevada can be verified. There is no technology that has been approved by the Nevada Gaming Authorities that meets this need. ISWI believes that the RAVETM technology will satisfy these requirements.
A live trial of the RAVETM technology in combination with its SportXctionTM system for home wagering is anticipated for January, 1999. Such a test is one of the conditions that must be met for the grant of the required approvals from the Nevada Gaming Authorities.
ISWI also announced that it is in the process of developing a comprehensive online sports wagering system for use with home PCs or telephone in conjunction with the TM technology. This system will accept the sports wagers currently available via telephone, and also include new types of wagers which will be available before and during the course of a sporting event. This development effort is being conducted in phases. It is anticipated that the first phase will be substantially completed and submitted to the Nevada Board for approval
during the first calendar quarter of 1999. The remainder of the project is planned for completion and submission to the Nevada Board during the second calendar quarter of 1999.
Once this wagering system is in place and if the required approvals from the Nevada Gaming Authorities have been received, the company intends to emphasize marketing of both conventional pre-game wagering and the SportXctionTM game from home in Nevada.