ISWI's Future in Doubt, Licensees' Future Uncertain

15 August 2008

Interactive Systems Worldwide Inc., the New Jersey software developer, has warned it may delist and cease operations, prompting questions regarding where its collection of high-profile licensees may take their business.

The news came in a statement to the over-the-counter bulletin board Thursday, wherein the company revealed it did not have the financial resources to cover the costs of filing a third-quarter report.

"The Company believes that since it will no longer be current with its SEC filings its common stock will shortly no longer be traded on the OTC Bulletin Board," it said. "The Company currently believes that its common stock will continue to be quoted on the Pink Sheets."

ISWI is projecting net income for the 2008 fiscal year as a net loss though without the ability to prepare financial statements, the company could not release a more specific forecast.

By way of background, the company commenced operations in 1995 as International Sports Wagering Inc. under Chairman Barry Mindes, who since 1962 has been involved with technology projects, most notably the development of New York City's first off-track betting system.

ISWI's business centers on its in-running betting platform, which, through its Global Interactive Gaming Ltd. subsidiary in London, is licensed out to partners.

According to Global Interactive Gaming's Web site, ISWI has partnership agreements with Betshop Group Ltd., Hipodromo de Agua Caliente, Ladbrokes, Sportingbet, Sunderlands, Victor Chandler and, potentially, the Ontario Lottery and Gaming Corporation.

Should ISWI go under, it is unclear what may happen to its outstanding contracts -- an issue that has no doubt crossed the radar of potentially affected parties.

Bernard Albanese, chief executive of ISWI, told IGamingNews last month that the company -- given the sensitive nature of its financial position -- was unwilling to comment beyond its stock-exchange statements.

Sportingbet and Ladbrokes did not immediately return requests for comment Friday.

Click here to view a copy of ISWI's business prospectus published in December 1996 with the Securities and Exchange Commission.

Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.