Sky City can lay bets on Canbet's future

Friday 20th July 2001

By Nicholas Bryant

With the US pro-football season less than a month away, listed gaming and entertainment company Sky City is licking its lips in anticipation.

For the first time in over a year it knows the future is brighter for its 33%-owned Canberra-based and licensed on-line wagering company Canbet. Due to draconian US gaming laws, most of Canbet's clientele are Americans, many of whom love betting on the NFL.

Canbet has been under a cloud of political uncertainty since May last year when John Howard's Australian government announced its intention to ban all forms of on-line gambling. The Interactive Gambling Bill was finally passed this month.

While the government had set out to ban all forms of interactive gambling, a concerted lobby from race and sports betting operators, among them Sky City, forced it into a position where, to get the bill passed, it had to exempt on-line wagering from the ban.

For Canbet it means plans to relocate the business to a gambling-friendly environment offshore have been shelved, leaving the company to focus on further growth.

Seen by many as a tech stock, Canbet's share price is about A6c, well down on its 12- month high of A28c.

Sky City meanwhile has been one of the best performing stocks on the NZSE 40 index during the first six months of 2001.

Its shares closed 5c down on Wednesday at $11.75.

Also on Canbet's share register from this side of the Tasman is high-profile investor Eric Watson.

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