eBet Limited has sold its internet casino subsidiary, www.casinoebet.com, to Cyprus Management Company N.V., operators of VIP Casino. eBet is a publicly traded company listed on the Australian and New Zealand Stock Exchanges (ASX/NZSE:EBT).
Australia’s online gambling moratorium prompted the sale. “Under the Federal Government’s recent internet gambling moratorium which comes into effect today, we determined the most practical course of action was to sell the casino,” said Keith Cullen, eBet’s Managing Director. “The terms of this sale ensure that we are well within the moratorium requirements and provide us some real flexibility should the legislative environment improve in Australia when the moratorium is over in May next year.”
VIP paid US$250,000 for the casino. The sale was completed today and VIP has assumed full management and control of www.casinoebet.com.
VIP will continue to use the eBet name under a trademark licensing agreement and will retain CasinoeBet’s existing customer base and its associated databases. CasinoeBet is powered by CryptoLogic casino software.
eBet holds an option to acquire back the issued capital of eBet Casino that may be exercised between 18 May 2001 and 7 September 2001 or earlier if permitted by Australian law.
“We are pleased to have disposed of this asset in an orderly fashion with limited interruption to the service and to existing or potential customers,” said Cullen. “The sale price represents full recovery of all establishment and operational costs associated with the casino and, if legislation permits, we have the right to exercise our buy back option and pick up where we left off. In the mean time, VIP is an experienced and competent operator who we are confident will do well with this valuable asset.”
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