State-Licensed Internet Gaming Comes to Germany

State-licensed Internet gambling is coming to the German state of Lower Saxony next month by way of a deal between Chartwell Technology and the state's exclusive casino operator, Spielbanken Niedersachsen GmbH (SNG).

Chartwell, a Toronto-listed developer of Internet and mobile gambling software systems, will initially provide a suite of casino and soft games on SNG's Web site, www.CasinoLand.de. A Flash casino product is slated for launch on the SNG site in early May.

"We shall be launching Germany's first legal virtual casino, and are required by law to ensure the highest standards of security," said Rainer Chrusbassik, SNG's chief executive.

"With Chartwell as our partner we can fulfill our obligations in this respect, while at the same time offering an outstandingly attractive range of products. The intense process of system implementation has been a great challenge to all of us, but one we have succeeded in mastering."

"The project is unique in Germany and will point the way for future developments," he said.

SNG is a subsidiary of Casinos Austria International, the land-based and Internet gambling operator. The company has been providing games of chance in Lower Saxony, the second-largest German state with a population 8 million, for close to 20 years. Last year SNG's gross win exceeded 94 million euros, or $148.77 million.

The terms of Chartwell and SNG's five-year agreement also provide for the rollout of additional gaming products to SNG sister companies "as and when locally permissible."

"We have gained an exceptional industry partner with a well-established gaming business, helping to ensure our future growth in the key regulated German market," said Darold Parken, Chartwell's chief executive. "It has always been our strategy to align Chartwell with blue-chip licensed operators, and in SNG we have a perfect example."

"Chartwell went through an extensive vetting process to win this contract with SNG," Mr. Parken went on. "Our software and people passed the test and we are extremely excited with the opportunity to work with SNG in this growing gaming market."