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Poker.co.uk - Poker News Archive
Thursday 15th November 2007 Online Casino Wraps up Ongame Deal
Online gambling group Bwin and the former owners of the Ongame group, which the Austrian company acquired last year, have reached an agreement that amends the original terms of sale and completes the long delayed transaction.
'In connection with the Bwin Games, formerly Ongame Group, transaction, Bwin and the sellers agreed on a deferred consideration with a potential value of $120 million including interest as of settlement date,' said a Bwin spokesman.
The initial sale was disrupted in October of 2006 due to the passage of America’s Unlawful Internet Gambling Enforcement Act (UIGEA). This legislation outlawed financial transactions with online gambling companies and saw Bwin exit the real-money US gambling market.
'In spring this year, Bwin entered into negotiations with the former majority shareholders of Bwin Games, who sold 96.3 percent of the company's shares,' the spokesman continued.
Bwin stated that the agreement would waive the purchase price owed, which amounted to around $116 million including interest, in return for 28.89 percent of the net gaming revenues generated from US customers over the next five years should Bwin reintroduce real-money gaming products such as its poker site PokerRoom.com to American customers.
This amount will be capped at $116 million and, in addition, Bwin is being released from all remaining lock-up obligations on the sale of its shares, which the original owners of Ongame received as part of the purchase price.
'This agreement fully settles the Bwin Games transaction with this group of sellers,' concluded the spokesman.
Source: OnlineCasinoNews
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