Online gambling group sign deal
Global Interactive Gaming Limited (a wholly owned subsidiary of Interactive Systems Worldwide, Inc.) has announced their agreement in principle with Sportingbet Plc, the online sports betting and gambling group.
“We are very pleased with this agreement to extend the contract, said Bernard Albanese, the Company's CEO. “It shows that Sportingbet is pleased with the growth in revenue from the service we've provided them during the last year and that they are optimistic regarding its future growth”.
The original contract between the tow companies went through an amendment in May 2007, which then expired in November 2007. Despite this expiration, the two companies continued to operate whilst still negotiating the extension. The arrangement specified a revenue share arrangement between the companies to provide fixed monthly fees to GIG.
Now, the new agreement extension specifies that GIG's monthly revenue would be determined by the larger of a revenue share percentage and a new minimum monthly guarantee. This combination of revenue share coupled with a minimum monthly guarantee will result in significantly higher monthly fees to GIG than the current agreement.
When the new financial agreement is signed, which should happen in the next few weeks, the contract will be made effective retroactively to February 1, 2008. It is also anticipated that the new agreement will be renegotiated and extended again, prior to the new professional soccer season that starts in August 2008.
“In addition, the extension will provide the Company with a much-needed increased level of stable cash flow”, continued Albanese. “It is expected that the anticipated cash receipts will allow GIG to be cash flow positive on a go-forward basis. This is the first time that GIG has been able to achieve this milestone."