SOURCE: MGN Technologies, Inc.

October 11, 2006 16:44 ET

MGN Technologies Clarifies Its Position Regarding the Unlawful Internet Gambling Enforcement Act

KIRKLAND, WA -- (MARKET WIRE) -- October 11, 2006 -- MGN Technologies, Inc. (OTCBB: MGNLF), doing business as Mobile Gaming Now (the "Company"), today clarified its position with respect to the passing of The Safe Port Act on September 30th, 2006 by the United States Congress. The measure contained a provision known as the 'Unlawful Internet Gambling Enforcement Act of 2006' that would prohibit credit card companies and other payment providers from processing online gambling transactions.

MGN Technologies, Inc. stated it does not participate in Internet gambling and instead offers a sweepstakes game where players can compete for points and prizes. "Our sweepstakes game is 100% legal because it's based on sweepstakes and not gambling. It doesn't ask a player for consideration to play the game. The passing of the new Act is a very positive event for MGN. We are positioned to offer gaming companies a legal game where players have a monetary incentive to play as well as the spirit of competition," said CEO Mark Jensen.

PartyGaming, the leading online gambling company, stated in a press release on its website "the Board of PartyGaming has determined that if the President signs the Act into law, the Company will suspend all real money gaming business with US residents, and such suspension will continue indefinitely, subject to clarification of the interpretation and enforcement of US law and the impact on financial institutions of this and other related legislation."

"An estimated 23 million Americans play Internet poker every day according to a study from the American Gaming Association. The number of Americans gambling online has grown 20 percent every year, to the point where they're now wagering $6 billion annually. The new Act threatens this business. MGN Technologies offers a solution for Internet gaming companies with our sweepstakes game," said Jensen.

MGN Technologies built a mobile gaming platform in 2005 and 2006 for the implementation of PC and mobile games. MGN concluded it would not operate gambling in the United States because of the grey legal environment. Instead, MGN built its MGN Casino Sweepstakes program.

MGN Casino Sweepstakes features casino games played online or through a mobile phone where players can play for free and earn points to enter cash drawings. Players compete in a multi-player environment and earn points for their participation in the site. Other games available include black jack, roulette, slots and video poker. MGN tested the game for 57 handsets on the Cingular Wireless network. This includes the Motorola RAZR, one of the best selling mobile phones of all time. The game is also available on the Blackberry. The Company previously announced it has built a version of its poker game for the Blackberry 8700, the newest and fastest Blackberry phone.

Jensen said Mobile Gaming Now's version of casino games utilizes sweepstakes law where players are not obligated to purchase anything and the outcome of the game doesn't determine how many points are earned for entering prizes. He said the game doesn't qualify as wagering and can be played by any adult in the United States. "Players can play for free or join our membership club and play our casino games for prizes with the knowledge that its 100% lawful," Jensen said.

In testing the casino sweepstakes game, Mobile Gaming Now said it registered nearly 1,000 members from February to May 2006. "We tested our game extensively and concluded it's ready to launch. We're actively seeking licensees for our mobile gaming platform," said Jensen.

About Mobile Gaming Now

Mobile Gaming Now is a gaming software developer and marketer focused on the casino gaming market with offices in Kirkland, Washington and Vancouver, British Columbia. The Company operates its own gaming sites, as well as licenses its gaming platform to strategic partners. Players can play for free or play for prizes. The company developed the first multi player Texas Hold'em game for free or money with integrated PC and mobile play. Please click onto www.mobilegamingnow.com for more information.

Forward-Looking Statements

This press release contains certain statements which are not historical or current fact and constitute forward-looking statements within the meaning of such term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual financial or operating results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. These statements include i) MGN has registered nearly 1,000 members since February, 2006 ii) MGN's Casino Sweepstakes games are not online gambling and no wagering is involved. Such forward-looking statements are based on our best estimates of future results, performance or achievements, based on current conditions and the most recent results of the Company. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms may, will, potential, opportunity, belies, belier, expects, intends, estimates, anticipates or plans to be uncertain and forward looking. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Don Currie
    Toll Free 1-888-990-3551

    968701.2