Member Info for Jarv55

If they get the go ahead revenues are going to be huge here. Its a sitting duck. Now you can buy at 3 and take the risk or wait until its all passed and try and buy after the rns.

In the interim, we are busy developing our strategy for sports betting. We see WatchandWager as the Licensed Association responsible for the operation, and as result will work with selected suppliers in both software, risk management, compliance and marketing amongst others. We have currently issued a Request for Proposal (RFP) for these functions to key suppliers and have been excited by initial responses.



In terms of timing, a date for legal sports betting is difficult to predict at present. Should either initiative reach the California ballot on 3 November 2020, legal wagering could commence in 2021. However, at time of writing, 2022 is more realistic, we will keep shareholders fully informed as to progress.



Other States



Shareholders should also be aware that the Executive are also working on other initiatives in relation to expanded gaming not only in California, but also Arizona, Kentucky and North Dakota, plus certain potential international developments. We will inform shareholders should these move forward.



Summary



We are pleased with the overall progress of the Company. We have restructured the business and, as a result, it is more balanced and generating a much-improved margin. We will focus on this key priority going forward.



In terms of strategy, the Board are very aware of our key assets, namely the securing of our licenses in California, especially the long-term agreement with Cal Expo. There are still many hurdles to be overcome, and the next six months will be very busy with the potential for impending legislation and selecting partners. One thing is for sure: licensed Sports Betting is coming to California, and we hold a critical asset in the State Capitol. We are very aware that there is likely to be a stampede of commercial interest in gaming in one of the largest economies in the world. We will keep shareholders fully informed of progress in this area.

Short term


I am pleased to report that performance has been a little above expectation across our key sectors from December to the time of writing. We have seen particularly good performance from our business-to-consumer unit and the racetrack in California. Whilst the final quarter of the year will be very important during peak racing season in the USA and internationally, at present the Board are positive that the momentum can be maintained to end May 2020 and beyond.



Longer term



Existing operations



As stated, the Board is confident that existing operations have now stabilised and can indeed return to profitability. The operation is run leanly and whilst the external welfare issues impacting horseracing and greyhound racing are a concern, there remain significant opportunities, both domestic and international, for new player content. Our strategy is to grow our platform through additional content and players, but continually focussing on higher margin business. However, the Board recognise that the ultimate goal is to capitalise on the huge opportunities available within USA expanded gaming landscape.



USA Expanded Gaming



Cal Expo/California



During the period, some significant progress has been made within California to join the ever-growing number of states legalising fixed odds sports betting. As a result of this, the decision was made by the Board to extend our lease at the Cal Expo racetrack for a further five years (to 2025), with an option to extend even further to 2030. This was a strategic decision based on legislative progress in the State Capitol in Sacramento, and to secure our position in the face of competitive influences.



Since then the situation has coalesced into two major, but competing, initiatives. The first being the State backed Senator Gray/Dodd Bill (ACA 16), which continues to be debated in Sacramento. The adoption of this is our preferred solution as in draft form it includes our racetrack as an operator who could be licensed, but also allows for online/mobile operations, plus white label options to expand. In addition, a sensible tax rate in line with the successful New Jersey model is suggested. The second initiative, namely the proposed constitutional amendment tabled by several Native American tribal casinos is also welcome but much narrower in definition, including only land-based activity, with no mobile betting. There are several other restrictions placed upon the racetracks before they can undertake sports betting. The wider Gray/Dodd initiative, which will undoubtedly be more attractive for customers, would create many more jobs and tax payments within California. In conjunction with other interested parties, we are working hard to ensure that the key decision makers in Sacramento are aware of these facts.

On a related but separate subject, the Board is very aware of the potential impact of the COVID-19 pandemic on W&W. At present the business continues to operate efficiently and business continuity plans have been put in place. Our racetrack at Cal Expo continues to operate with the approval of our regulators, albeit behind closed doors (licensed personnel present only).

The Loan

The Loan carries a coupon 7.0% for a term of five years and is secured against all the unencumbered assets of Webis.

Denham Eke, the non-executive Chairman of Webis, is a director of Galloway Limited and both he and Nigel Caine, a non-Executive Director, are directors of Burnbrae Limited of which Galloway Limited is a wholly owned subsidiary and which is an indirect 63.1% shareholder in Webis. Accordingly, as a Related Party Transaction under AIM Rules, the independent Directors (being Ed Comins and Sir James Mellon), having consulted with the Company's Nominated Adviser, consider the terms of the Loan are fair and reasonable in so far as Webis's shareholders are concerned.

The Board of Webis, the Group specializing in pool wagering and the operators of Cal Expo, the Californian harness track, as part of the on-going strategy to protect and develop its USA licenses in relation to expected impending sports betting legislation, has agreed a Term Loan on behalf of its wholly owned subsidiary, Watch & Wager Inc ("W&W") for the sum of US$500,000 from Galloway Limited ("Loan").

The primarily purpose of the loan is to support the W&W physical and on-line licenses in the State of California. As reported to shareholders and highlighted in the recent Webis interim report for 2019/20, there is considerable optimism for potential legislation of licensed sports wagering in California being passed. Most importantly, the draft Senator Gray/Dodd AC 16 Bill clearly allows for racetracks such as Cal Expo to be permitted to operate licensed sports betting in the State. As shareholders are aware, the Board recently extended its lease on the Cal Expo racetrack to May 2025, with an option to extend until 2030. Given the momentum in California and the success of sports betting in other States such as New Jersey, it now seems inevitable that licensed sports betting is coming to California, possibly as soon as 2021, subject any impact that the current COVID-19 pandemic may have.

The Board of Webis believes the development of its presences in California and at Cal Expo especially, located in the state Capital of Sacramento, is vital to the Company. Whilst progress has been significant, there is much still to do to clarify detailed legislation and to protect the track position from competing initiatives. It is important that the legislation is drafted both fairly and to allow for a model for growth, especially in permitting mobile wagering and "white label" sites. This will provide the greatest scope for new jobs in the State and significant extra taxes/duties returned to government, as per the successful New Jersey model. Thus the Loan will primarily be used on lobbying, compliance and developing key structures to support the pending license applications.

The part of the Loan will also be used to further develop and market of our principal website, watchandwager.com/mobile. This site continues to show good levels of growth and has the potential for further expansion in market share.

Two bbs

Upto 16 days

Wh Ireland need to sort this if they aren't compliant think they may get fined

They should of used Primarybid

So was the placing forward sold and some placees haven't paid up?

Company should of used Primary bid to raise

Well I wonder if they did forward sell the shares then would be funny if cash came from elsewhere and they didn't use the placing

IF it passes its a multibagger you pay your money you take your chances

uNkwnTrader beginning to wonder if they are here to scare monger on the shorters behalf.

https://capitolweekly.net/pandemic-raises-stakes-on-sports-gambling-measure/

https://www.cnbc.com/2020/04/30/morgan-stanley-goes-all-in-on-best-in-breed-sports-betting-stock.html

They aren't going under the only ones under are the brokers who were naughty by forward selling shares that aren't approved yet hence the warning rns today from the nomad.

Hope the brokers haven't forward sold the placing because it hasn't been voted through yet. Think the broker may have been a bit naughty here.

Looks like the brokers have not been matching buys and sells properly why haven't they been doing extention pms daily to balance the book? Is a mm short here?

Well Wh Ireland won't be getting any awards this years **** poor handling