Playtech Limited
02 October 2006
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.
- ends -
Enquiries:
David Rydell / Peter Otero
Bell Pottinger Corporate & Financial 0207 861 3232
This information is provided by RNS
The company news service from the London Stock Exchange
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