Global Approach Ltd responds to the Unlawful Internet Gambling Enforcement Act

In response to approval of the Unlawful Internet Gambling Enforcement Act, Global Approach Limited announced that it will no longer accept players who are located in the United States. The company plans to further expand into the Asian and European markets, and indicated that it is engaged in merger and acquisition talks. The full statement is as follows:

Update on US ban and Global's new approach

Global Approach Limited announces a renewed focus on Asian and European markets together with a major corporate restructure.

The move follows the US federal restriction of processing of any financial instrument in connection with the participation of unlawful gaming that is prescribed by regulation.

This regulation has not been drafted and must be promulgated within 270 days of the commencement of the Unlawful Internet Gambling Enforcement Act ("the Act").

Following the presidential approval of the Act in Washington D.C. on Friday 13 October; Global has made a decision to no longer accept bets from customers in the US, where it is prescribed as "Unlawful".

Managing Director James Canning-Ure said, "Revenues from US players for our combined casino and poker business amount to around 50 percent of net gaming revenues".

"We plan to offset any potential revenue loss by continuing our expansion into the European and Asian markets."

Mr Canning-Ure said the company was in merger and acquisition talks with a number of potential partners, which would offer backroom savings and synergies, to maximise shareholder value through curtailing costs.

"Fortunately, our company's global approach means we have not relied upon the US market and therefore continue to have excellent growth prospects going forward," he said.

In June, Global launched the Japanese-language site www.ibigcasino.com for the Japanese market, as the company ramps up its marketing efforts in the world's second-biggest economy.

"Japan shows enormous potential as the Japanese already gamble over $40 billion a year in public lotteries and racing, with another $300 billion from pinball-style pachinko parlours," Mr Canning-Ure said.

"Global's casino site is one of a few catering for Japanese punters, and with our call centre of Japanese-speaking staff in Brisbane – a city with only a one hour time difference from Japan – we're well placed to capitalise on this demand."

In the United Kingdom, Global recently re-launched its UK-focused casino brand www.ukcasinoclub.com. The company is currently in the process of implementing a number of strategies targeting Europe, including translating its casinos into a number of European languages to meet client demand.

"Directors and senior management are also taking sizeable salary cuts as we move to slash up to $ 1.5 million of expenses from the business. All operations are currently under review as result of the change to our operating condition," he said.

As a result, the previous projection of $2.1 million net profit after tax for the 2007 financial year is unlikely to be achieved. However it is premature to provide an updated forecast at this time until the full effect of the US situation and the proposed cost savings are realised.