Nambling Notes - Sept. 21, 2005

21 September 2005

IPO Delay -- Gibraltar-based gaming operator 32Red.com will reportedly delay its planned initial public offering on the Alternative Investment Market of the London Stock Exchange until the investing community regains confidence in the online gambling industry. Andrew Dawber, head of corporate finance for Numis Securities, which is advising 32Red on the float, has verified that the company has made all the necessary applications to the AIM and will continue with its plan to raise £10 million as the sector progresses.

Betfair Status in Tas -- It had been anticipated that Tasmanian Premier Paul Lennon would announce yesterday whether his government would endorse U.K.-based Betfair's bid to obtain a license to operate a betting exchange in the state, but the decision has been postponed until Oct, 18 so that the discussions between Betfair, the state government and the state's racing industry can continue. The Melbourne Herald Sun reports that Lennon believes he already has enough support in both legislative chambers to pass a licensing plan for Betfair through Parliament. As a consequence of Tasmania going against licensing the British firm against the wishes of other state governments and racing industries, Tasmanian racing could be banned from the SuperTAB, TAB Limited and UNiTAB wagering pools.

Mobile Numbers -- A report on mobile downloads in the United Kingdom published last month by research firm Mintel shows that gambling has been the largest area of growth among all mobile downloads and now constitutes 9 percent of all downloads. Mintel forecasts that the number of downloaded betting pages should approach 3 million this year, representing a rise of 367 percent over 2004. Non-gambling games constitute 25 percent of mobile downloads while ringtones constitute 33 percent, screensavers and wallpapers constitute13 percent and music constitutes 9 percent. About 82 percent of British adults and 61 percent of youths now own mobile phones. The market for handsets in the country is expected to pass £1 billion this year.

Welcome Aboard -- Karl Magnusson, a director of Swedish online gaming software provider Ongame, has been named to the board of directors of I-gaming self-regulatory body eCOGRA (e-Commerce Online Gaming Regulation and Assurance). Ongame recently became the third online gambling software company to join the eCogra self-regulatory initiative, which administers its "Play It Safe" seal of approval to online gaming sites that comply with its generally accepted practices. Fifty-six members are online gambling sites.

Danish Games -- Iceland-based gambling software provider Betware has supplied Danish Lottery operator Tipsjeneste with new instant scratch games that are playable over the Internet. Betware's gaming platform makes it possible for Dansk Tipstjeneste to offer the same games it sells at retail outlets over the Internet. Betware has also installed a new instant bet generation and audit system that will be used to generate the bet outcomes for instant games offered by Dansk Tipstjeneste. The system is called "Trusted Play" and was developed by U.S.-based Szrek2Solutions.

Ambitions -- Diamond I, Inc.--a developer of wireless gaming products that has in recent months emphasized its intent to operate its hand-held WifiCasino GS Concierge and Gaming System in casinos and resorts in jurisdictions where remote gambling is permitted on the premises of such establishments--says it is moving forward with a plan to enter the online gambling business by establishing a U.K.-based online gaming software licensing company. The company in late August exercised an option to acquire U.K.-based I-gaming software provider Touchdev Limited--a purchase that could accelerate the launch date of Diamond I's software licensing activities.