L&G AND GCTV ONLINE GAMBLING DEAL OFF

19 October 2007

Confirming rumours that have been swirling for the past three weeks, L&G looks elsewhere


Leisure & Gaming plc, the online betting and gaming group has terminated takeover discussions with CGTV Games Ltd with immediate effect, the firm has announced to the London market.

Originally Canadian-based, CGTV was reportedly interested in acquiring L&G (see previous InfoPowa report), a prospect that surprised many observers given the rumours concerning the software company which have been swirling around the industry for the past three weeks. GCTV acquired the troubled Gambling Federation group last year.

However, ex-staff members at CGTV have revealed that the firm has let go almost 75 percent of its CAD staff this year in both Canada and China, where a 12 man development office still operates. And reports of a new office in Ireland are being questioned regarding location, management and staff numbers, too.

Adding to the intrigue, the Canadian business news publication MacLeans.ca recently published a highly critical article on the CEO at CGTV, one Barry Hansen, regarding business activities in which he was allegedly involved in China. There is also speculation that CGTV may be about to morph into a new firm branded Velocity Games.

In its statement to the market, Leisure and Gaming said it had been approached by other parties and was now considering these alternative proposals. It noted that it was not currently in discussions with any other party relating to a takeover of the company.

Speculation over a possible deal began at the end of September, when L&G noted in its interim results that it had received an indicative offer from CGTV, described as "...a global provider of casino software and slots based in Dublin, Ireland."

Leisure & Gaming plc is a holding company focused on the online betting and gaming sector. Incorporated in England and Wales and listed on London’s Alternative Investment Market (AIM) under the symbol ‘LNG’ since September 2004, the company focus is on emerging markets, particularly Italy and Central and Eastern Europe, and it has offices in the UK, Italy, Cyprus, Greece and Romania.
Main operations consist of BetShop Italia, an online sports betting service supported by a franchised network of approxiamtely 800 Betshop-branded shops and retail outlets offering sports betting via terminals, across with a further 300 outlets pending;

BetShop.com, a pan-European online sports betting, casino and poker business operating in eight languages;

GoalsLive.com, a soccer information and results portal service for internet and mobile phone users; and

Acropolis Casino, a pan-European online casino.

Between them, these companies hold a UK bookmaker's permit and betting and gaming licences from the Netherlands Antilles, Romania, Cyprus and Italy.

Online Casino News courtesy of InfoPowa