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Microcap & Penny Stocks : Advance Gaming Technologies Inc. (AGTI) -- Ignore unavailable to you. Want to Upgrade?

To: Kilroy who wrote (1917)	4/7/1998 10:50:00 PM
From: tgs59	Read Replies (1) \| Respond to of 4539

Kilroy, Your question begs several other questions. 1. The legal status of games such as Sonic Bingo. The largest market penetration of similar games is in OK at this time (check with the Multimedia Games MGAM web site). Unfortunately, the U.S. Attorney and Justice Dept. have chosen to take up a challenge as to the nature of these games, class II or class III. MGAM is in a serious fight with the government at this time. I know the CEO (Gordon Graves) and believe he will continue the good fight. I certainly hope that he prevails as this will clear the legal ambiguities currently holding competitors back from introducing new products and games. A good example of this is GMTC. I am sure AGTI is aware of the current legal challenges and the potential impact that judicial rulings will have upon Sonic Bingo. I believe that it will be difficult to introduce Sonic Bingo until these challenges are resolved. Current users of MegaMania are unlikley to switch, as they at least have an NIGC (National Indian Gaming Commission) approval letter, though Justice is challenging. I do not believe that the NIGC will review new products until the current issues are resolved. I have not had a recent update as to the current status of the legal situation, but will make some calls. 2. Competition. MGAM has its current MegaMania which has and is very successful and has recently announced a new game (FlashCash). I have not seen this new game as yet, though I think they are going to put it on the internet for free play. Also Worldlink has a game called Rocket Bingo and of course GMTC has a similar game. If all of these companies are simply fighting over the current market, then the financial potential becomes very diluted. Should the legal rulings result in the clarification of these games as class II, then the potential for the market grows significantly. A larger market will allow all of the respective companies a better opportunity to grow revenues, without undue pricing pressures. Recognize that MGAM has a strong position in the market and I would expect them to be very aggressive. 3. Will the proposed structure allow earnings to eventually hit the bottom line of AGTI? The JV entity will, I assume, have overhead expenses, sales expenses, etc. I also assume that any net earnings are then split with Sega. Thus AGTI's split then comes to AGTI to cover its hopefully reduced expenses to result in a net profit. Assuming you get this far, these earnings are then divided by 120+ million shares for eps. My question is what is Sega bringing to the table. AGTI has developed the product and it is supposed to be virtually ready, thus what does Sega do in this venture? Sega does not seem to have much of a presence in Indian gaming, so I'm not sure what marketing help they offer. Maybe I missed it, but what specifically can and will Sega offer AGTI for their 50% of the JV. I would think that Mark Sammons, one of AGTI's top marketing people would be better positioned to sell the product than Sega. I think many people have simply become enamored by the name Sega. Anyway these are simply some random thoughts I had after reading your question. tgs59