Experts Say Recent Shockwaves Will Have a Medium-Term Impact on the Industry

15 August 2006

LONDON/MUNICH -- (PRESS RELEASE) -- The consulting firm MECN presents the results of their newest survey "Future of Online Gambling after the Shockwaves." Nearly 100 industry experts offer their unique insights and assessments regarding the critical issues the online gambling industry currently faces.

The recent weeks were the toughest ever for the private online gambling industry: the Goodlatte/Leach Bill (online gambling prohibition bill) passed the US House of Representatives; the CEO of online sportsbook BetonSports was arrested by the FBI; the high courts in Germany limited the validity of private betting licenses,… and these are just a few of the recent shockwaves to hit the gambling industry. It is particularly the rapid succession of these events in just a few short weeks that shocked the industry.

These events have led to a high demand for more detailed information about how the online gambling industry sees the current critical issues and what potential strategic approaches could look like. The ca. 100 respondents to MECN's survey, most of them working for an online gambling company and including many industry leaders, offer their unique insights and assessments regarding issues such as:

- Impact on the online gambling industry - 98% of online gambling experts believe that the recent shockwaves will have a medium-term impact on the industry.

- Problem of entire online gambling industry - Only 12% of the industry insiders surveyed believe that the arrest of the CEO of BetonSports is solely a problem of BetonSports. The majority believes that this arrest will end in problems for the entire online gambling industry.

- No overreaction of the stock market - Only 35% of the insiders believe that the stock market overreacted.

- Planned online gambling IPOs will be cancelled or postponed - The majority of the experts (77%) believe that the most likely immediate effect of the current threat will be that planned online gambling IPOs will be cancelled or postponed.

The full survey results can be obtained at http://www.future-online-gambling.mecn.net

About MECN:

MECN is a network of experts on issues concerning the media and entertainment industry. Together they provide in-depth knowledge, analysis, and advice to global clients.


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