Nambling Notes - Aug 18, 2000

On the Legal Front -- Starnet Communications International Inc. reported this week that Canadian authorities have concluded their investigation into allegations that the company distributed prohibited pornographic images of adults and children over the Internet. No charges will be issued against Starnet or members of the company's management. An affidavit filed by Canadian authorities on August 14, 2000 in the Supreme Court of British Columbia stated in paragraph 55 the following: "No pornographic images of children were found within the computer system operated by Starnet, and no charges will be recommended to the Attorney General of British Columbia, as the result of this investigation, in regard to Starnet having distributed prohibited pornographic images over the Internet."

"Results of the investigation by Canadian legal authorities confirm what we have maintained since the beginning of this investigation: we are not, and have never been, involved in distributing illegal pornography," President and Chief Executive Officer Meldon Ellis said. "In fact, we have always had policies in place that prohibited such illegal commerce to take place. One non-management employee of the company, in violation of company policy, was discovered to be in possession of illegal child pornography. He was immediately dismissed with cause from Starnet, and subsequently charged by Canadian authorities. Since that time, we have divested our adult entertainment division and are no longer involved in the adult entertainment industry."

Tidbits from Australasia -- The Philippine Amusements and Gaming Corp. (Pagcor) last month awarded Sports and Games Entertainment Corp. (SAGE) with an Internet gaming license, but the commencement of sanctioned Net betting based in the Philippines is far from a slam dunk. The prohibitive ball got rolling last week when word got out that the country's Senate is attempting to thwart the two group's efforts. This week the Catholic Church made its voice heard at the Catholic Bishops' Conference of the Philippines. The group affirmed its stance against all types of gambling and singled out online gambling as a particularly serious threat. 'We have to convince people not to patronize gambling. God does not approve of that," CBCP spokesperson Nestor Cariño said at a press conference. "We are not doing enough in evangelizing against gambling because many people still engage in gambling." eSuccess Incorporated, developer of solutions for credit card fraud protection, announced this week that it has established and staffed an office in Melbourne, Australia.

Makin' Deals -- Gaming software developer United Trading.com announced Tuesday that it has finalized an additional sale of a non-exclusive license of the company's Advanced Gaming Software Package to Malt Limited, a Cook Island company, resulting in a $250,000 profit to the company on the sale. Under terms of the non-exclusive license Malt Ltd. will offer, through its Internet gaming site play-for-money and play-for-fun blackjack, double exposure blackjack, video poker, eight-way slots and "deuces wild" poker to players worldwide in those jurisdictions where gaming over the Internet is not prohibited by law. Malt Ltd. will be solely responsible for operation of this new gaming site as it is for www.bettorsisland.com. The agreement marks the third sale by the company within a period of approximately one month of its Advanced Gaming Software Package, which has been under development for the past year.

Windnsea Gaming Services has announced that it has made Casino Grande the seventh site to go under the company's management in the year 2000. "Being selected to manage the customer service and credit card functions of this seasoned gaming operation is a tribute to our reputation of professionalism, and further proof of our dedication to becoming a major player in this industry", says Craig Williamson, president of Windnsea Gaming Services. "We will have at least 12 online gaming sites under management by the end of year 2000 as I predicted in January."

Windnsea also announced that it will manage the operations of a new worldwide gaming jurisdiction headquartered in a major Central American city. The country will be named upon the launch of Net betting September 11.

Xirtrix Gaming Technologies Inc. announced this week that its Transnet Services Ltd. subsidiary has signed a multi-casino licensing agreement with World Gaming Corp. The deal calls for Transnet to develop four themed online casinos for World Gaming Corp.

Boss Media AB this week brought its total number of software licenses to 30 by signing an agreement to develop an Internet casino for Cactus Gaming Ltd. Sixteen of the 30 have been sold during 2000. The software for the Internet casino will be based on Boss Media's multi-player software platform and is scheduled to go live on the Internet by this fall.

Poker.com, Inc. has announce that its Casino Marketing S.A. subsidiary has sold a new casino license, bringing the company's total number of licenses sold to date to 13. The license includes the ability of the licensee's customers to play various online games such as blackjack, roulette, craps, baccarat, pai gow, Caribbean poker, video poker and slot machines. The name of the new licensee was not disclosed.

Changing of the Guard -- iCrystal Inc., a developer and licensor of Internet based games and casino gaming software, announced this week the resignation of President Doug Slamko. Derek Bodnarchuk, a current director, will assume the role of President.