Reverse Takeover -- Shares in Curacao-based online gaming firm VIP Management Services N.V. will become available to the public through a US$44.5 million reverse takeover deal with Leisure & Gaming Plc (LNG.L), a shell company that listed on the Alternative Investment Market of the London Stock Exchange in September 2004 with an aim to acquire an online gambling company. Leisure & Gaming will pay an initial $35.5 million for VIP's assets and will later pay the remaining $9 million if the company meets its profit targets for the next two years. VIP's shareholders will retain a majority stake in Leisure & Gaming, and the board will be changed to reflect the VIP majority. Alistair Assheton, CEO of VIP, and Peter Blacker, finance director of VIP, will both join the board of Leisure & Gaming, and Assheton will also assume the role of CEO of the company. Leisure & Gaming's current CEO Benjamin Shaw-who was also instrumental in deals that involved Betcorp's acquisition of BETWWTS in the late 90's and Talarius' takeover of RAL last month-will become an executive director. VIP reported operating profit of $6 million for the year 2004 off of turnover of $330 million and gross win of 19 million. In the first quarter of 2005 new customer sign ups rose 51 percent to 5,565 compared to the same period in 2004. Leisure and gaming also plans to raise $10 million through a placement of new shares.
Deadline Extension -- Channel 4 has extended the now expired deadline to reach an agreement with Britain’s racing and betting industries to the end of this week because discussions between the parties has shown “the prospect of a positive outcome.” After broadcasting horse racing for 21 years, the company has stated it is losing money through its coverage of the sport and is therefore requesting £8 million in order to continue coverage. Representatives from racing and betting met last week and unanimously voted to reject the channel’s request, but apparently at least some meaningful negotiations were still taking place as the May 31st deadline passed. According to David Stevens, a spokesperson for bookmaker Coral, “Channel 4 are demanding money that we will not pay because of the precedent it will set. We do not pay any other broadcaster of televised sport. How can racing expect to be treated differently? And how can we fund a station over which we do not have any editorial control, especially as they actively promote our rivals, the betting exchange? The situation looks unworkable.” At least two stations, BBC and ITV would reportedly be eager to inherit Channel 4’s burden.
Tattersalls Sued -- Australian gaming company Tattersalls is being brought to court over allegations that its four trustees are not fulfilling their obligation to distribute ten percent of the company’s net annual profits to employees. Company founder George Adams dictated in his will that employees should receive an annual bonus worth ten percent of the company’s net profits, and only two years ago trustee David Jones stated on an ABC television program that Adams’ will was still honored. The legal claim filed by a former general manager alleges that the trustees have been secretly moving money around the company and paying salaries out of net profits, thereby leaving less money for the employee bonuses. The former general manager alleges that about $50 million is owed to employees. Tattersalls is not commenting on the case except to say that it vigorously denies the claims. The case should be heard in court in June 2006. Meanwhile the company is planning a public float on the Australian Stock Exchange that is already many months behind schedule. With a potential pricing of AU$2 billion, the float could be Australia's biggest of the year.
iGGBA Member -- iGGBA (interactive Gaming, Gambling and Betting Association) has welcomed Kroopier Technologies, a company that provides security solutions to the remote gambling industry, as its latest member.