Friday July 14, 3:04 pm Eastern Time
Company Press Release
SOURCE: American Wagering, Inc.
American Wagering Signs Stipulation to Settle Complaint
LAS VEGAS, July 14 /PRNewswire/ -- American Wagering, Inc. (Nasdaq: BETM - news) today announced they reached an agreement with the Nevada Gaming Control Board, subject to approval by the Nevada Gaming Commission, regarding the disciplinary complaint filed against the Company relating to their MegaSports Pty, Ltd. Australian Internet gaming unit. The Nevada Gaming Commission will meet on July 27th to discuss this settlement agreement.
The Company reached the proposed settlement without admitting or denying the allegations. The Company agreed to pay a fine of $10,000 and has agreed to divest itself of any and all interests and rights pertaining to the Australian operation. The divestiture may be accomplished by sale, spin-off or terminating the operations of the subsidiary. The time frame for the divestiture is 180 days from the date of acceptance by the Commission. The Company has the right to request not more than three 60-day extension periods to complete the divestiture. The Company hopes to update shareholders in the near future on the plan for divestiture.
Commenting on the settlement, American Wagering CEO Victor Salerno said, ``The Company agreed to a settlement which allows us to continue our sports betting and keno operations in Nevada. The settlement helps us avoid delays in our license applications in other domestic jurisdictions. We hope to shortly announce our plans for the divestiture and in what time frame it will be accomplished. While this was a very unfortunate event, we felt it was in the best interest of the company and our shareholders to resolve this matter. The Company is currently in discussions with 3 major investment groups concerning the Australian operation. We feel that an agreement with any of these groups will result in enhanced shareholder and customer value. We do not expect any disruption of business during the transition period.''
American Wagering, Inc. owns and operates Leroy's Horse and Sports Place, the licensed bookmaker with the largest number of sports book locations (49) in the state of Nevada; CBS, the dominant supplier of sports equipment and software in Nevada and creator and operator of Mega$ports; and AWI Keno, Inc., which is the systems operator for interlinked Keno games. The Company also owns and operates an Australian subsidiary which operates Mega$ports on the Internet.
The statements contained in this release, which are not historical facts, contain forward-looking information with respect to plans, projections or future performance of American Wagering Inc., the occurrence of which involves certain risks and uncertainties, including that American Wagering, Inc. takes financial risks on the outcome of sporting events; an increase or decrease in handle is not necessarily indicative of an increase or decrease in revenues or profits. There can be no assurance that negotiations with investment groups will be successful. Investors should also examine other uncertainties detailed in American Wagering Inc.'s filings with the Securities and Exchange Commission.
SOURCE: American Wagering, Inc. |
