iGaming Corporation

iGaming Corporation

December 01, 2006 13:30 ET

iGaming Enters Into LOI to Purchase U.S.-Based Fantasy Sports Operator RotoPlay

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 1, 2006) - iGaming Corporation ("iGaming" or the "Corporation") (TSX VENTURE:IGA) announces today that it has entered into a non-binding Letter of Intent to acquire the assets of RotoPlay, Inc., a Pennsylvania-based corporation involved in the online fantasy sports industry.

Specifically, RotoPlay's website, www.rotoplay.com, offers a wide variety of innovative fantasy sports contests based on football, baseball, basketball, golf, and auto racing. RotoPlay's unique design provides for the production of multiple winners, shorter-term competitions and the possibility of reduced player competition.

"The addition of RotoPlay's assets provides us with the opportunity to introduce our existing database of customers and include in our current marketing initiatives the popular world of fantasy sports. There is a great deal of synergy between iGaming's current assets and RotoPlay and we see this acquisition as an ideal fit. We anticipate that we can increase RotoPlay's existing revenue stream without any significant addition to our combined fixed costs", stated Christopher Kape, iGaming's President and CEO.

The fantasy sports industry, which is growing at a rate of 7-10% annually, has approximately 15 to 18 million participants and generates more than $1.5 billion per year in North America (as reported by the Fantasy Sports Industry Association in March, 2006). It was also specifically excluded from the recently-passed Unlawful Internet Gaming Enforcement Act.

As fantasy sports is legally permissible in the United States, iGaming's management believes that the pending RotoPlay acquisition provides an excellent opportunity to position iGaming as a unique supplier of sports information to the millions of players who participate in the large and growing sector of the gaming community.

Once acquired, RotoPlay is expected to be operated by IGC Entertainment Corporation ("IGCEC"), a wholly-owned subsidiary of iGaming.

Korey Gardner, one of the founders of RotoPlay, will be engaged as a consultant of IGCEC on a going forward basis. "I believe RotoPlay's concept is an ideal fit in the iGaming family and I expect that there will be a considerable increase in revenues which can be obtained as a result of the association with iGaming's other sports-related assets", stated Mr. Gardner. iGaming also has plans to further develop and enhance the RotoPlay product.

The aggregate purchase price of this transaction will be a maximum of US$300,000 (with approximately US$30,000 of such price being paid by way of the purchaser's assumption of certain liabilities associated with the purchased assets). Approximately US$85,000 is expected to be payable in cash upon closing and the remainder of the purchase price will be subject to the purchased assets attaining pre-determined revenue targets for the Corporation's fiscal quarters which end between February, 2007 and November, 2007.

As of the date hereof, iGaming has 56,349,533 issued and outstanding common shares.

The closing of this transaction is subject to TSX Venture Exchange approval as well as final due diligence by iGaming management.

About iGaming Corporation

iGaming owns and operates assets that provide fact-based and opinion-oriented information relevant to the sports gaming industry. These assets include websites, client-server software, publications and call centers. Although not a gaming operator directly (as it does not operate a gaming facility or accept wagers directly or indirectly from consumers), iGaming is heavily vested in the gaming space as a provider of services and customer leads to various gaming operators.

The Company generates revenues in a number of ways, including various direct to consumer services and direct to gaming operator sales through its portfolio of websites which includes JimFeist.com, PicksOnline.com, Vegasonlinesports.com, OffshoreConnection.com, FurturesandProps.com and ScoresLinesPicks.com. In addition, iGaming operates Linetracker a state of the art, real-time sports information system for the more serious bettors and handicappers.

iGaming's common shares commenced trading on the TSX Venture Exchange on September 14, 2006 under the symbol IGA.


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