Centrebet wagers on a Democrat change to online gambling laws | IXGAMES

CENTREBET chairman Graham Kelly yesterday questioned whether the new US internet gambling laws would be enacted under a new Democrat-led Congress, after he indicated that the company might exceed its 2007 financial year forecast.

Speaking at the company’s first annual general meeting since listing in July, Mr Kelly said that trading had started “strongly in FY 2007 for the four months up to October 2006 and we remain ahead of our forecasts”.

The waging and gaming company finished the last financial year 8 per cent above its prospectus forecast. Mr Kelly talked up the company’s prospects in the 2007 financial year, underpinned by what he described as “a defined strategy” of cross-selling gaming products to existing clients, mobile phone betting, affiliate programs and expansion into Spain. He said later: “We are ahead of them (2007 prospectus forecasts) at the moment and frankly I see no reason why that will change.” Centrebet previously flagged a 2007 net profit after tax of $11.6 million. Mr Kelly said he was disappointed the stock was not trading above its $2 issue price, blaming it on an excessive response to the new US Internet Gambling Enforcement action legislation, “notwithstanding the fact that we have never targeted the US”. He reiterated that Centrebet would not be affected by the US gaming laws, which prohibited banks from making or taking payments from locals within online gaming operators. He questioned whether the new gaming laws would stand under a Democrat-led Congress. “That legislation was enacted by a Republican Congress whether that legislation will be enacted when the new congress assembles will be a very different matter,” he said. “One should not necessarily assume that will stay the same in the US.” Mr Kelly said that while being listed made the company more vulnerable to a takeover, it too was on the look out for “opportunities”. Managing director Con Kafataris said Centrebet was in discussions with some partners in Asia. Mr Kelly highlighted the company’s potential in the mobile phone betting arena, described as the “fastest growing sector”.