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Emily D. Swoboda

Nambling Notes - Feb. 24, 2004

24 February 2004

Settlement -- and TVG Network have settled a legal dispute that began in September 2003 when TVG subsidiary ODS Technologies filed for injunctive relief to stop Youbet from holding a shareholders meeting which would attempt to alter the company's charter and by-laws, thereby denying TVG the opportunity to obtain a majority control in Youbet by exercising a warrant that could be redeemed for a large portion of shares. Youbet has agreed to withdraw its proxy proposals, and TVG has agreed to drop all pending litigation. Also as part of the settlement, TVG may not redeem its warrant until after April 1, 2004. The exercise price of the warrant has also been lowered to $36.5 million. If TVG chooses not to redeem the warrant before its expiration date of May 18, 2004, then Youbet must give TVG 1 million new shares of Youbet stock. Youbet must also pay $725,000 for the legal expenses incurred by TVG during the disupute.

Cyber Crime Report -- A two-day "e-crime congress" kicks off today in London with government security officials from Europe and the United States in attendance. Detective Chief Superintendent Len Hynds, the head of Britain's National Hi-Tech Crime Unit, will reveal the results of a survey by research group NOP, which show that British companies from all industries have reported losses of £195 million due to cyber crime. Financial institutions have suffered much bigger losses than other sectors. . . . A spokesperson for the National Hi-Tech Crime Unit told the Guardian that it is investigating six cases of British bookmakers being blackmailed by DDoS hackers. Paddy Power was brought down for several hours on Super Bowl weekend at the beginning of February. Extortionists last weekend targeted Blue Square and Coral. The attack on Coral began Friday night and lasted until Sunday night, but the company said the effect on its business and customers was minimal. Blue Square said that it had not only been hit by DDoS attacks this weekend but also Super Bowl weekend. Blue Square also said the effect was minimal, estimating that only about a quarter of its customers may have been denied service during the attack. Ladbrokes, William Hill, Tote and Victor Chandler said they have never experienced a DDoS attack.

Mobile Lotteries -- Lotteries and gaming company GTECH has licensed the service delivery platform of Irish mobile payments software company Valista, which it will integrate into its own Enterprise Series Interactive architecture, allowing consumers to buy lottery tickets via mobile phones and other devices. Valista will receive a licensing fee, and could see large revenue in the future if GTECH deploys the software in many regions around the world. GTECH is currently involved in the operations of 85 lotteries internationally.

Banking Accounts Seized? -- reports that U.S. authorities have seized all U.S. bank accounts of the owner of Belize-licensed sports book Carib Sports. A spokesperson for Carib denied the claim and insisted that operations are fine.

Korean Mobile Gaming -- Three South Korean wireless carriers, SK Telecom, KTF, and LG Telecom, are looking to capitalize on the growing popularity of mobile gaming. SK Telecom, the largest wireless operator, now has deals with 26 mobile game publishers, though the gaming industry opposes its new business strategies. KTF experienced a 25 percent rise in revenue in January. Propelled by that success, the company has removed a card game service from its offering and is establishing a new gambling category. According to a spokesperson, "We are open to every service provider, but terms of contracts will still hinge on the number of users. It is open competition, with focus placed on large networks and quality games." LG Telecom is also prospering off of mobile gaming, and is currently engaged in a WiPi Technology deal with KTF. Just last month the South Korean government reprimanded a technology provider for jointly offering Internet gambling with a company from North Korea. The government has since said that all gambling, outside of casinos, is illegal, and is currently seeking prosecution against some citizens that used the North Korean gambling site.

Nambling Notes - Feb. 24, 2004 is republished from
Emily D. Swoboda
Emily D. Swoboda