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MORE INTERACTIVE TELEVISION BETTING MOVES BY NETPLAYTV
3/27/10 - The UK interactive television gambling company, NetPlay TV has announced that it is to take control of the current Challenge Jackpot database from Virgin Media Television for a fixed cash payment of GBP 1.82 million.
The move is a further step designed to achieve the company's goal of becoming the UK's leading broadcaster of gaming experiences across a broad range of platforms, said a company spokesman this week.
He said that NetPlay TV and Virgin Media Television have agreed significant revisions to their agreement announced of 7 April 2009, and revealed that NetPlayTV has also agreed terms with Virgin Media TV for the termination of the option agreement under which VMTV was granted options over 14.9 million ordinary shares in Netplay.
Under the revised agreement NetPlay TV will take control of the current Challenge Jackpot database and terminate the Option Agreement in exchange for a fixed cash payment of GBP 1.82 million. The current database generated GBP 2.9 million of gross gaming margin from 12 May 2009 to 31 December 2009 and was subject to a revenue share agreement.
Under the revised terms all revenues arising from this database will be retained by NetPlay TV, with VMTV receiving fixed monthly payments that reflect the value of its airtime.
Martin Higginson, group CEO of NetPlay TV plc, said: "The revised terms of this deal allow us to invest in the future development of the Challenge Jackpot brand, as well as the ability to extend it onto other channels.
"We see Challenge Jackpot as the mass market gaming channel in our portfolio, with something for everyone. Over the coming months we will introduce more live TV games allowing us to broadcast to wider audiences at peak times.
"Termination of the option agreement is a good use of the company's cash reserves. It reduces the threat of dilution for all shareholders."
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