The two companies have agreed to extend the closing date for a proposed business combination from October 31 to November 30. The special shareholder meeting of Parlay\’s shareholders has also been moved to November 27.
“The extension to the merger was necessary to allow both parties to resolve certain US tax implications, complete further due diligence and for the board of directors of Chartwell to obtain a fairness opinion on the proposed business combination.”
Chartwell Technology, which specializes in the development of gaming applications and entertainment content for the internet and wireless platforms, reiterated its long-standing European market focus and the geographical diversity of its revenue sources given recent regulatory developments in the US. “Chartwell\’s business and client base has always been focused on the European market. As such, we have positioned Chartwell to benefit from a move towards regulation in the European Union or, as in the current environment, to mitigate any significant losses in revenue as a result of US prohibition,” said Chief Executive Darold H. Parken. “Fortunately, the recent US actions shouldn\’t really impact our business or our plans for the future.”
Parlay Entertainment, which is the inventor and patent holder of internet bingo, generates approximately 60% of its revenue from the United States. Since mid 2004 when United States facing customers represented 99% of Parlay\’s revenue, the company has committed to reducing its exposure to United States dollar deposits by increasing the number of software licensing relationships with United Kingdom and European facing customers. Parlay remains focused on the expansion of land-based bingo into the internet and it anticipates that the majority of its growth will come from the UK and Europe.
Bingo.com, which recently announced a 49% increase in Q2 online gaming revenue, said that following the passage of new United States legislation, it will be focusing future business expansion in European markets such as United Kingdom, Italy and other internet gaming friendly jurisdictions. “We have been in preparation for this targeted international strategy for a long time and we are excited to put these plans into action. We are extremely fortunate to have the best possible URL for providing online bingo so while this policy change in the United States may impact the performance of the Company in the short term, we expect the Bingo.com brand to be well received in the new markets in which we focus,” commented CEO Tarrnie Williams.
Dynasty Gaming said it would sell three of its wholly-owned subsidiaries that are not aligned with the company’s primary business strategy and focus on concluding software licensing agreements with online gaming operators in the emerging market of China.
Las Vegas From Home.Com announced that despite the closure of US accounts will have an adverse material impact on the company\’s business, it intends to comply with the US ban. The company has been exploring for some time the opportunity to sell its licensed operating unit, Action Poker Gaming. Several parties have expressed interest and LVFH is currently in advanced discussions with a company, that, despite the recent legal developments in the US, it still intends to acquire the APG business. If a sale will take place, Las Vegas From Home will then focus on its Asian Multi-Player Software Platform, which has been developing for the past year.
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