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Alderney Gambling Control Commission Issues Interactive Gaming Licence to Sky Bet

30 October 2002

ALDERNEY, Channel Islands –(Press Release) -- Bonne Terre Limited, a wholly-owned subsidiary of BSkyB Group plc has been awarded an Interactive Gaming Licence by the Alderney Gambling Control Commission (AGCC).

In February 1998 Bonne Terre Ltd was issued with an Electronic Betting Centre licence by the AGCC and successfully operated a fixed-odds betting service via telephone and the internet under the name of Surrey Sports from the company's Alderney headquarters. Following the abolition of betting tax in the UK, in October 2001 trading was transferred to Surrey Sports' head office in Harrogate, North Yorkshire.

The company which now trades under the Sky Bet brand, proposes to operate its own offshore casino using its well-established links with Alderney.

The gaming software will be provided by WagerWorks Inc. who, as a veteran of the traditional casino industry, has adhered to the highest standards imposed by the U.S. regulatory authorities. The company plans to locate the gaming equipment in the Cable & Wireless (Guernsey) hosting facility on the island and to source its customer support staff from their Alderney base.

Finance Director Mark Wood said: "We believe that Alderney offers a robust regulatory environment that is consistent with our business philosophy of fair gameplay and protection of the customer. We are delighted to be returning to the Island and we look forward to working with the people of Alderney once more."

Commenting on this announcement, André Wilsenach, Chief Executive Officer of the Alderney Gambling Control Commission said: "So far we have issued four interactive gaming licences and several more applications for online gaming and electronic gambling licences are currently being processed. These licences enable the licensees to conduct interactive gaming from Alderney on a regulated basis. However, prior to conducting interactive gaming, all licensees will be required to obtain approval from the Commission for their interactive gaming systems, all games to be made available for play and their control systems."

Today's news was welcomed by the States of Alderney which openly promotes the development of inter-active gaming and electronic gambling operations. Alderney States Member Col. Peter Walter said that "Alderney has gained worldwide recognition for a highly regulated gambling industry and as a result we are attracting reputable businesses who will only operate within a well-regulated environment."

In April 2002, the first such licences were awarded to Littlewoods (Alderney) Limited, Ritz Interactive Ltd and WagerWorks Alderney Ltd.

Alderney, the third largest of the Channel Islands has its own government, legislature and company laws and is an offshore centre for investment, finance, e-commerce, e-gaming and e-betting. The island is just 3.5 miles long and 1.5 miles wide and has a permanent population of 2,400 residents. Alderney boasts a competent computer-literate workforce and a stable government.

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