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Non-Tech : Starnet (SNMM)Online gaming, sexsites, lottery, Sportsbook -- Ignore unavailable to you. Want to Upgrade?

To: Gator who wrote (3861)	7/27/1999 5:31:00 PM
From: Techplayer	Respond to of 8858

Gator, Yes, at least 200,000. One question I have here is whether or not Starnet is the go between for the winnings and if LVC does not pay, if the betting winners would have to get it from SNMM. That is another 100k. 200k/27million shares looks like an immaterial amount for earnings... If LVC stays in business, it looks liable for 300k plus significant damages for libel of Starnet and management. We should be back on track tomorrow. Brian

To: Gator who wrote (3861)	7/27/1999 5:33:00 PM
From: StockDung	Read Replies (2) \| Respond to of 8858

stockhouse.com July 27, 1999 StockHouse News Desk By Chaya Cooperberg (ccooperberg@stockhouse.com) Suddenly Lawsuits Are Looming, And Investors Are Panicking. Toronto, ON, July 27 /SHfn/ -- In a complete reversal of fortune, Starnet [SNMM] is now facing a lawsuit that threatens to lighten the company's purse by a whopping $1 billion. Shares have been dropping faster than you can say blackjack. On heavy volume, the stock is charting significant losses. The plaintiff: Las Vegas Casino, Inc., Starnet's biggest licensee for its online casino games. In a press release put out this morning, the company is claiming damages for a number of breaches of agreement. According to Las Vegas Casino's spokesman, Starnet "has too many grave irregularities in their accounting systems, too many serious bugs in their software." The company also says that Starnet has not been providing the necessary technical and e-cash support needed to run the online gambling operation, and that there have been problems with huge over-billing to credit card accounts. Las Vegas Casino charges that Starnet has not been cooperating with auditors, refusing to provide the proper accounting records it promised under the license agreement. Thousands of irate clients have been complaining to Las Vegas Casino about Starnet's software and the company itself, saying that the subsidiaries "were the worst they have ever known." Starnet is a leading developer and provider of Internet technologies for gaming applications. Its income comes from licensing its technology through subsidiaries, and business has been booming. Starnet owns five subsidiaries, including Softec Systems Caribbean. Softec is also being sued under the terms of the Las Vegas Casino's lawsuit. Recently, Starnet reported that Softec has signed licensing agreements with Twilight Online Services and Net-Force Gaming Systems. Just last week, Softec announced it had signed up Stack-Em Holdings, and Glen Eagles Holdings. The spokesman for Las Vegas Casino says that, "Starnet's highest management has admitted in writing that these problems were real, and this evidence of numerous admissions will be presented to the courts as early as next week." Right now, Starnet is embroiled in another lawsuit, brought by Home Gambling Network. Home Gambling is suing the company for infringing on its method patent. The patented technology enables Internet gaming from a remote location in a live casino game, involving on-line debiting and the crediting of wins and losses directly to a player's financial institution. The discovery portion of the proceedings is set to begin next week, and Starnet will be forced to open its books. Deedee Molnick, president of Home Gambling, says that Starnet will have to reveal a number of pieces of information, such as a complete list of its licensees, where wagering is taking place and where its gamblers are located. (There is US legislation that makes online gambling illegal in its borders.) Home Gambling cannot put an exact price on the damages it is seeking while the case is in court, but according to Mel Molnick, the company's secretary treasurer, a rough estimate for the federal court's award in damages would be between $150 and $200 million. • • •