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Applied Gaming Solutions of Canada Inc.
7/5/00 - Secures Rights To Provide Sports Wagering
APPLIED GAMING SOLUTIONS OF CANADA INC ("AGC-V;AGSCF-L") - Secures Rights To Provide Sports Wagering - For Ho Chi Minh City Region
Applied Gaming Solutions of Canada Inc. has been awarded the exclusive right to deliver sports betting technology and services to the Lottery Authority of Vietnam for the Ho Chi Minh City region (formerly Saigon).
AGC will supply the technology and expertise to put sports betting into a system of 1,200 online lottery terminals being introduced to the Ho Chi Minh market over the next nine months. This expanded wagering system will offer the only legal sports betting in Vietnam, allowing wagering on local, national and international events such as European soccer. "The government of Vietnam is asking AGC to take on an increasing amount of its wagering activity," said David Aftergood, President and CEO of AGC. "They have decided to allow sports betting in Vietnam and to do it using our equipment and associated services."
Terms for implementing the online lottery and sports betting systems in the Ho Chi Minh City region are in the final stages of negotiation. AGC supplied and supports the online lottery system in Hanoi, the Vietnam capital, in return for a percentage of the gross proceeds over seven years.
The government of Vietnam estimates that $1.5 billion (U.S.) was wagered illegally last year on the outcome of sporting events, with the majority of this activity concentrated in the Ho Chi Minh City region. By legalizing sports betting on AGC equipment, the government intends to capture hundreds of millions of dollars in revenues that are currently forfeited.
AGC expects simultaneous start-up of the on-line lottery and sports betting in early 2001. It further expects that the popularity of sports betting may result in some of its 1,200 online units being allocated specifically to sports betting type shops. "Providing this kind of technology to the Government is an important achievement for AGC. Sports betting is very popular in Vietnam and we are confident that significant benefits will accrue from this activity to our customer, the Lottery Authority in Vietnam, the players and ultimately our shareholders - whose patience and support of our vision will be rewarded," said Mr. Aftergood.
Applied Gaming Solutions of Canada Inc. is a global leader in the outsource management of online lotteries, e-gaming solutions and related professional services for delivery to a growing audience of international governments. Today, AGS leads technical and marketing support activities for the on-line lottery system run by the Construction Lottery of the Capital-Hanoi in Vietnam, delivered in conjunction with its' suppliers AWI, a division of Anchor Gaming [NASDAQ:SLOT] and IBM [NYSE:IBM].
Sports Wagering FAQ's 1. What is, Sports betting?
Sports Betting allows the players to wager on the outcome of International, National or local, sporting events, especially soccer. Soccer is a very popular sport in Vietnam and it is the Corporation's intent to satisfy the demand for this product by providing the Government Lottery Authority with the necessary Hardware and Software required to properly conduct this activity. The Government estimates that this type of wagering is larger than all forms of wagering combined in the country. 2. Is there a market for Sport betting in Vietnam?
Vietnam has a population base of approximately 80 million people and a long history for wagering on sporting events. Currently in Vietnam, there is no form of legalised sports betting but the government of Vietnam estimates that $1.5 Billion (U.S.) was wagered illegally last year on the outcome of sporting events. Government sources estimate, almost 90% of all gaming related activity is concentrated in the Ho Chi Minh City region. Even with the handing down of stiff prison sentences to gamblers, the government has been unable to quell the demand for wagering on sporting events, especially European soccer. The addition of sports betting on the online system will provide the players the only legitimate sports betting option available in the country. 3. What kind of revenues can be generated from traditional Sports Wagering?
In 1999, the three largest bookmakers in the United Kingdom, Ladbrokes, William Hill and the Coral Group, reported that over $9.66 Billion (CDN) was wagered through their authorised sports betting facilities. In 1999, Ladbrokes alone reported that $4.16 billion was wagered in its betting shops and, even with an adverse run of results in soccer and horse racing, the retail betting shops still turned a profit of over $200 million.
The New Zealand TAB, which offers sports wagering to the 3.7 million inhabitants of New Zealand, through 500 betting shops, reported in 1997 it accepted over 170 million wagers totalling $1 billion and it paid out $820 million in winnings. Of the 18% percent that is retained by the New Zealand TAB, 5% is paid to the New Zealand Government, the New Zealand Racing Board receives 3.3% and 10% is kept by the TAB as a commission. 4. What are the plans for introducing Sports betting in Vietnam?
As part of the plan to expand the online lottery program into Ho Chi Minh City, the Government has requested that Applied Gaming introduce a sports betting game on the online system. Initially, the Corporation expects to implement 1,200 terminals into the Ho Chi Minh City region in a two stage process, with a minimum of 600 terminals per stage. These terminals have the ability to operate in a "Sports Select" mode or a traditional sports betting style. The Corporation anticipates simultaneous start up of operations of the online lottery and sports betting in early 2001.
In an unrelated development, pursuant to an arms-length Employment Agreement, AGC has received approval to issue over a twelve month period 27,027 common shares at $0.37 per share for a shares for services private placement. These shares when issued will be subject to the standard four-month hold period.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of the Company, or industry results to differ materially from those reflected in the forward-looking statements. Forward-looking statements are based on the current expectations, projections and opinions of the Company's management, and the Company undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made, for example to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
For further information, please visit our website at: www.ags.ca TEL: 1-888-685-7788 Rob Hetherington FAX: (403) 266-8909 Communications Co-ordinator E-mail: info@ags.ca