Business
Online Gaming in the USA
Online Gaming in the USA.
About this update from Gb Group Plc
[{"type":"text","content":"\n GB Group PLC\n02 October 2006\n\n\nFor immediate release: 2 October 2006\n\n\n GB GROUP PLC\n ('GB' or the 'Group')\n \n Statement re Online Gaming in the USA\n\nNew US legislation introduced on 30 September 2006, if signed into law, will\neffectively make Online Gaming illegal in the USA.\n\nOne of GB's three business areas, DataAuthentication is a leading provider of\nelectronic age and identification services to a range of sectors including\nFinancial Services, Online Gaming and Mobile Telecommunications. Currently,\nthese are provided for the purpose of verifying the age and identity of UK\ncitizens only. GB's strategy however is to provide an International service for\nverifying overseas citizens. GB's International verification service is due to\nbe launched this month and will be used for the verification of overseas\ncitizens in 21 countries.\n\nAn element of GB's expected future business, prior to the proposed new US\nlegislation, was the verification of age and identity of US citizens on behalf\nof Online Gaming clients which will not now materialise. To put this into\ncontext, however, the element of revenue that is included in forecasts for the\ncurrent year to 31 March 2007 in relation to Online Gaming in the USA is\n£150,000 or 1% of a consensus Group revenue forecast* of £16.9 million and, in\nthe following year to 31 March 2008, is £500,000 or 2% of a consensus Group\nrevenue forecast* of £23.4 million. Accordingly, this is not regarded as\nsignificant in terms of GB's longer term strategy.\n\nIn terms of the Group's existing Online Gaming business, regulators in the UK\nand Europe have historically taken a different approach to US regulators and\nstructured regulation and licencing of Online Gaming in these territories is\nwell established. GB expects the effect of the new US legislation will be that\nmajor Online Gaming operators will now concentrate their businesses in European\nand other markets where Online Gaming is legal and where GB has a market leading\nposition. In addition, registration procedures to ensure compliance with\nEuropean legislation to prevent under-age gaming and promote social\nresponsibility, is expected to be tightened. Both of these moves are likely to\nhave a positive impact on GB's existing electronic age and identity verification\nbusiness.\n\nRichard Law CEO commented\n\n'GB...