|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sector growth of 7 to 10 percent claimed
iGaming Corporation announced this week that its wholly-owned subsidiary, IGC Entertainment Corporation, has completed the purchase of the fantasy sports website Rotoplay.com from RotoPlay, Inc., a Pennsylvania-based corporation specialising in the online fantasy sports industry.
Fantasy sports operators have been claiming a carve-out for the genre in terms of the UIGEA recently.
|
|
|
|
|
|
The effective date of the deal was December 11, 2006, and IGC says the purchase of the RotoPlay assets offers a wide variety of unique and innovative fantasy sports contests based on football, baseball, basketball, golf, and auto racing, providing iGaming with significant exposure to the increasingly popular fantasy sports industry.
"The RotoPlay purchase represents an opportunity to broaden our product offerings to our core group of sports enthusiast customers. With a very significant database of such consumers, we are well-positioned to facilitate exciting growth for the RotoPlay asset," says Christopher Kape, iGaming's President and CEO.
"RotoPlay offers shorter-term and tailor-made fantasy sports contests that have demonstrated market acceptance. The challenge now is to use our existing resources to increase the RotoPlay market share," he added.
In March this year the Fantasy Sports Industry claimed that the fantasy sports industry is growing at a rate of 7-10 percent annually and has approximately 15 to 18 million participants generating more than $1.5 billion per year in North America alone.
Korey Gardner, one of the founders of RotoPlay, has been engaged as a consultant to IGC to assist with the integration and continued operation of RotoPlay as iGaming seeks to become a significant player in the fantasy sports area.
"The addition of a fantasy sports product will compliment iGaming's existing portfolio of assets and I am very confident that we can deliver impressive results", Gardner said.
The aggregate purchase price of the new acquisition is a maximum of US$300 000, of which a portion was paid upon closing and the remainder is subject to the purchased assets attaining pre-determined revenue targets for the iGaming's fiscal quarters which end between February, 2007 and November, 2007.
Kape said his company plans to vigorously market the new acquisition and cross-sell it to iGaming's portfolio of sports-related properties. "We believe that we can realise the benefits of increasing revenues while reducing overhead through existing synergies," he concluded.
The transaction is subject to Toronto Stock Exchange Venture Exchange approval.
|
|
|
|
| Back to News Menu... |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
