MusterDepot : _________MYCASINO NEWS
Thu, 20 Apr 2000, 7:05am EST
My Casino Rises Almost Five-Fold After Resuming Trade
By Darren Boey
Perth, April 17 (Bloomberg) -- Shares in My Casino Ltd., an
Australian Internet gaming company, rose almost five-fold above
its initial sale price, as it relisted on the Australian Stock
Exchange after previously trading as Abador Gold NL.
The sale of 38 million additional shares completes a change
in focus for the Perth-based company, previously a gold and nickel
miner. Shares in My Casino last traded at 95 Australian cents, 375
percent or 75 cents above its 20-cent offer price.
``If you look at the mining stocks, mining stocks have been
in the doldrums for a long time,'' said Gordon McIntosh, My
Casino's managing director. ``We saw a very large growing (online
Australian Internet gambling companies Gocorp, Gamble.com.au
Ltd., Lasseters Holdings Ltd. and Access Gaming Systems Ltd. all
recently announced they would offer their shares publicly.
My Casino closed at 75 Australian cents, a rise of 55 cents,
or 275 percent, over its initial share price of 20 cents.
Online Gambler Bucks the Market
By Pete Young
Investors can't resist taking a punt on internet gambling.
They gave a champagne ASX reception to online gaming company My Casino on Monday even though it picked the worst day to list in more than 10 years. While virtually every other tech stocks was being savaged, My Casino shares (issued at 20c) drove to a day's high of $1.15.
Other casino operators in the process of initial public offerings reached radically different decisions in the light of the share market shambles. Lasseters Holdings chose to delay its $40 million float a day before subscriptions were due to close. But Victoria's Gamble.com.au decided to push ahead with a $20 million fundraising, despite the huge correction.
The $7.6 million My Casino listing attracted support "right across the board", said managing director Gordon McIntosh. It holds one of three online gaming licences issued by the Vanuatu Government and, unlike Lasseters, can handle bets placed anywhere in Australia. However, its prime target audience will be in Southeast Asia and Europe, said McIntosh, a former director of international marketing with casinos in Queensland and Tasmania.
My Casino's excellent reception by investors was due to "a strong licence, a strong banking solution and a good product with a strong management team", McIntosh said. He suggested the market turmoil proved investors are finally disenchanted with blue sky tech stocks devoid of revenue streams. But they will nevertheless embrace "real businesses with real products creating real revenues".
Lasseters Holdings' offer, which embraces its online gaming operations and its bricks-and-mortar casino in the Northern Territory, was due to close this week but will be extended to May 8. Subscription lists were "virtually full" and the company is still committed to listing before the end of the financial year, said managing director Peter Bridge. "Given the overall impact of events in the last few days, however, we decided to allow the dust to settle." The decision appears to reflect uncertainty about investor attitudes to internet plays in the near future.
Lasseters Online's cyber-casino operations boast 47,000 registered players in 195 countries, with US players making up 68 per cent.
Gamble.com.au CEO Andrew Spinks said My Casino's pleasant ASX debut contributed to the decision to continue with his own $20 million float. Like My Casino, Gamble.com.au will operate under a Vanuatu licence which allows it to conduct international gaming operations. Vanuatu's 4 per cent tax rate (compared to Queensland's 50 per cent rate) was a key factor in basing its cyber operations there, Spinks said.