US Legislation
Playtech Limited
Statement Regarding US Legislation
The Board of Playtech Ltd ('Playtech' or 'the Company'), the AIM-listed international designer, developer and licensor of software to the gaming industry, notes the decision by Congress in the USA to enact the "Unlawful Internet Gambling Enforcement Act 2006."
The Board of Playtech states that it continues to receive legal advice regarding the impact of this legislation. Whilst Playtech is not an operator of online gaming nor a payment processor, the Board accepts that if this legislation becomes effective there would be a material impact on certain of its licensees and therefore on Playtech's revenues.
However, in the first half of 2006 more than 50 per cent of Playtech's revenues were derived from non-US players, a figure that is steadily increasing as the Company continues to add more new non-US facing licensees.
Playtech is actively growing its revenue base in Asia, Europe and South America where the Board believes it has substantial business development opportunities. Playtech's current new business and development pipeline, including commissioned products, is entirely focused on these non-US markets as are all new licensees.
The Board is confident that Playtech has a sustainable and profitable business model even in the eventuality of the proposed legislation becoming law. Additionally, the Board believes that the Company has significant cash resources and operating cash flows to support the business during its global development programme.
The Board continues to evaluate the situation and will provide an update as and when appropriate.
More on Playtech
Playtech develops unified software platforms for the online gambling industry, primarily targeting existing online operators wanting to upgrade their system; sportsbooks looking to diversify and land-based operators making their online debut. Playtech gaming applications — online casino, poker, bingo, mobile gaming, live gaming, land-based kiosk networks and fixed-odds games — are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface. Founded in 1999, Playtech has over 300 personnel distributed globally, around eighty percent of whom are engaged in research and development of current and future gaming technologies.
Website: www.playtech.com
