Press Releases
Parlay Entertainment Inc.: United States Legislation
Parlay statement on Unlawful Internet Gambling Enforcement Act of 2006
OAKVILLE , Canada — October 3, 2006 — Parlay Entertainment Inc. (TSXV: PEI)
On Friday, September 29, 2006, a Committee of Conference of the United States Congress attached the Unlawful Internet Gambling Enforcement Act of 2006 (the "Act") to HR 4954, the Safe Port Act, which Act was passed. The legislation is expected to become effective on the signature of President Bush in the coming weeks.
The Act provides that Internet gaming companies will be precluded from accepting United States financial transactions, to the extent that they are considered unlawful under current US Federal and State law. Following the effective date, the United States Treasury and Federal Reserve will have a period of approximately nine months to draft regulations and procedures. The regulations will prescribe how United States financial institutions will identify and block transactions related to unlawful Internet gambling.
Parlay has been advised by legal counsel that its United States facing customers now face increased risk of criminal prosecution as a result of the Act. Should the Act limit or impact negatively on our customers' ability to take deposits, this would have a negative impact on Parlay's financial performance. As we noted in our Q2 2006 financial reporting, approximately 60% of our revenue is generated from United States dollar deposits into our customer websites.
Since mid 2004, Parlay has committed to reducing its exposure to United States dollar deposits. Since fiscal 2004, when Parlay's United States facing customers represented some 99% of our revenue, we have substantially increased the number of software licensing relationships with United Kingdom and European facing customers. Some of these companies rank amongst the best known media and entertainment brands in the world.
It is this group of companies that is extending the traditional Internet gaming market into the mainstream and these companies have been the key contributors to Parlay's recent growth. As land-based bingo is a $70-90 billion global industry, we continue to expect that Parlay's new revenue streams will come from the United Kingdom and Europe, thereby further reducing Parlay's exposure to United States dollar deposits.
Since becoming aware of the Act, Parlay has consulted with its legal advisors and will continue to do so in order to understand the applicability of the Act to our customers. We remain very excited about the expansion of land-based bingo into the Internet. As the leading provider of Internet bingo solutions, Parlay continues to anticipate that the majority of its growth will come from its United Kingdom and European facing customers. We will continue to update our shareholders as new developments arise.
About Parlay Entertainment
Parlay Entertainment Inc. is the world's leading developer and dominant licensor of Internet bingo solutions. As the inventor and patent holder of Internet bingo1, Parlay is the first company in the world to develop and deploy a commercial Internet bingo product. Parlay Bingo is available in both 75-number and 90-number versions and is complemented by a full suite of lottery and casino games. Our multi-player, multi-platform technology is used to power more online bingo sites than any other software provider in the world. Some of the world's best-known brands use Parlay Bingo solutions, including Virgin, Yahoo! and MSN.
Contact:
Scott F. White
Parlay Entertainment Inc.
President & CEO
+1 (905) 337-6505
For more information on Parlay solutions and services, please visit our Web site at www.parlaygroup.com.
This document may contain statements about expected future events and/or financial and operating results of Parlay Entertainment Inc. that are forward-looking. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will not prove to be accurate. Readers are cautioned not to place undue reliance on forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The TSX Venture Exchange does not accept any responsibility for the adequacy or accuracy of this release.
² United States Patent No. 6,585,590 "Method and system for operating a bingo game on the internet", with other Patent applications pending in other countries.
© 2010 by Parlay Entertainment Inc.