Las Vegas from Home Sales APN Poker Arm
Software provider Las Vegas from Home.com Entertainment Inc. (LVH) announced Thursday the sale of its Action Poker Network (APN) business to Playsafe Holdings Ltd., a subsidiary of Norway-based public company Playsafe Holding AS. The APN business sold for a reported $2.5 million, with the transaction to be completed on or before Nov. 17, LVH said in a prepared statement. Playsafe has deposited a "break up fee" of $250,000 that, upon the sale's completion, will be applied against the purchase price. If the sale is not completed, the fee will be refunded to Playsafe or paid to LVH in accordance with the terms set out in the agreement.
LVH is now looking to the Asian market and plans to focus on continuing to develop its unique Asian Multiplayer Software Platform (AMSP) which has already been soft launched. Company President and CEO, Jake Kalpakian said LVH has been building AMSP for the past 12 months and is well positioned to license the software in the region.
32Red
Online casino 32Red has announced that its latest acquisition, online betting site BetDirect, will switch to Microgaming's software platform to power its poker and casino products. BetDirect is the 20th operation to join the Microgaming portfolio in 2006. Its previous software supplier, Sweden-based Boss Media, is one of many I-gaming companies to withdraw from the U.S. market following the passage of the U.S. federal I-gaming prohibition bill in September.
Chartwell/Parlay Deal Nixed
Online gaming software provider Chartwell and I-bingo solutions provider Parlay announced last week the termination of previously announced merger plans. The parties had signed a binding letter of intent on Aug 30, 2006, but market and regulatory concerns in the United States impelled the companies to nix their plans. According to the terms set out in the LOI, 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. Had 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. Furthermore, the companies each agreed to pay a termination fee of CA$500,000 to the other party if the merger was not completed. And according to a press release regarding the termination, Chartwell agreed to reimburse Parlay for a portion of its merger-related expenses.
Ladbrokes Seeking Acquisitions
U.K.-based bookmaker Ladbrokes is on the hunt for new acquisitions in the online gaming industry, The Sunday Telegraph reported. "It would be unusual if we were not to look at opportunities in the sector," the newspaper quoted a spokesman for Ladbrokes as saying. "We are monitoring the situation." Shortly after the enactment of the online gambling ban in the United States, Ladbrokes announced it would be stepping up its online poker presence in Europe in an attempt to position itself as a leading performer in the market. The company said it believes that poker players, as well as investors and advisers, will view Ladbrokes as a safe harbor, given the legal climate in the United States.
Reporting
Boss Media AB (BOSS.ST) has released its interim results for the January to September 2006 period reporting a 39 percent increase in sales to SEK 231.5 (US$167.0) million. Royalty revenues for the period increased by 37 percent to SEK 184.1 (US$134.2) million. Additionally, third quarter sales increased by 33 percent to SEK 76.9 (US$57.8) million and royalty revenues increased by 25 percent to SEK 59.2 (US$47.5) million.
Boss Media - Interim Report
Canada-based horse racetrack and wagering operator Magna Entertainment Corp. (MECA) will announce its financial results for the third quarter ended Sept. 30, 2006 following the close of business on Nov. 1, 2006. Company Chair and Interim Chief Executive Officer Frank Stronach will hold a conference call, as well as a Web cast, on Nov. 2, 2006 to discuss the results.
Payment processing services provider FireOne Group plc will announce on Nov. 7 its results for the third quarter and nine months ended Sept. 30, 2006.