Gb Group Regulatory News (GBG)

2 Oct 2006 16:01

GB Group PLC02 October 2006 For immediate release: 2 October 2006 GB GROUP PLC ("GB" or the "Group") Statement re Online Gaming in the USA New US legislation introduced on 30 September 2006, if signed into law, willeffectively make Online Gaming illegal in the USA. One of GB's three business areas, DataAuthentication is a leading provider ofelectronic age and identification services to a range of sectors includingFinancial Services, Online Gaming and Mobile Telecommunications. Currently,these are provided for the purpose of verifying the age and identity of UKcitizens only. GB's strategy however is to provide an International service forverifying overseas citizens. GB's International verification service is due tobe launched this month and will be used for the verification of overseascitizens in 21 countries. An element of GB's expected future business, prior to the proposed new USlegislation, was the verification of age and identity of US citizens on behalfof Online Gaming clients which will not now materialise. To put this intocontext, however, the element of revenue that is included in forecasts for thecurrent year to 31 March 2007 in relation to Online Gaming in the USA is£150,000 or 1% of a consensus Group revenue forecast* of £16.9 million and, inthe following year to 31 March 2008, is £500,000 or 2% of a consensus Grouprevenue forecast* of £23.4 million. Accordingly, this is not regarded assignificant in terms of GB's longer term strategy. In terms of the Group's existing Online Gaming business, regulators in the UKand Europe have historically taken a different approach to US regulators andstructured regulation and licencing of Online Gaming in these territories iswell established. GB expects the effect of the new US legislation will be thatmajor Online Gaming operators will now concentrate their businesses in Europeanand other markets where Online Gaming is legal and where GB has a market leadingposition. In addition, registration procedures to ensure compliance withEuropean legislation to prevent under-age gaming and promote socialresponsibility, is expected to be tightened. Both of these moves are likely tohave a positive impact on GB's existing electronic age and identity verificationbusiness. Richard Law CEO commented "GB's strategy for electronic age and identity verification is to provide aservice of the highest quality and reliability which is unobtrusive to thepublic but enables businesses to verify their customers in seconds, providingcompliance with legislation and minimising identity fraud. New high growthinternet models, where registration takes place on line and paper proofs ofidentity are ineffective, represent fertile ground for GB's services. Growth inthe market for electronic age and ID verification has exceeded our expectationsto date. The Board's view is that this continues to represent a real andsubstantial opportunity for the Group." * Consensus of the Group revenue forecasts of three firms of stockbrokers For further information, please contact: GB Group plcRichard Law, Chief Executive 01244 657333Mona Navin-Mealey, Finance Director Weber Shandwick Square Mile 020 7067 0700Richard HewsHelen Thomas Website www.gb.co.uk Notes to Editors About URU (TM) URU is an electronic identity verification service which was developed jointlywith BT and is DataAuthentication's principle offering. URU, which is powered byGB's ID3 (TM) search engine and decision making technology, provides access to GB's comprehensive range of identity data and BT's high capacity web delivery. Ithelps organisations to protect themselves from the growing problem of identitytheft and fraud, which is estimated to cost the UK economy over £1.7 billion perannum. URU enables companies subscribing to the service to make an instantdecision whether to accept the identity claimed by any given individual andconfirm their age in seconds. URU works by cross checking personal information provided by an individual atthe point of acquisition against a comprehensive range of datasources to confirmthat an individual is who they claim to be, live where they claim to live andmeet certain minimum legal age requirements. No personal data is disclosed by the reference databases and as a result URU iscompliant with the Data Protection Act. URU also provides a valuable audit trail demonstrating that the necessary checkshave taken place, thereby helping companies comply with legislation, includingthe 2nd European Money Laundering Directive, Proceeds of Crime Act and MinimumLegal Age requirements of certain industry sectors. The addition of data from CallCredit also enables users of URU to incorporatecredit reference data. As a result of legislation, new opportunities and social responsibilityrequirements, the market for electronic ID verification is significant andgrowing. Although an estimated 0.5 billion manual ID checks are conductedannually in the UK, less than 3% of these are currently performedelectronically. URU has demonstrated that electronic checks are more effective, less expensiveand more robust. The market is moving towards electronic checks as fraudulent documents becomeever more sophisticated, more readily available and more difficult to checkmanually. It is estimated that by 2010, the market for electronic ID checkscould be 300 million checks per annum. GB works closely with trade and industry associations, such as the Finance andLeasing Association, the Remote Gambling Association and the FinancialTechnology Research Centre, to advise businesses that more robust processes canprevent financial crime. We have worked closely with the Gaming Industry toaddress social issues such as underage gambling and addiction and our SocialResponsibility Consultancy helps Gaming operators formulate best practice tocomply with regulatory requirements and improve profitability. About GB Group plc GB Group plc provides a range of products and services to enable organisationsto capitalise on one of their greatest assets - customer data. The Company hasexpertise across a range of sectors and is able to transform customer data intovaluable information, enabling clients to make better, more informed decisions. The development of innovative software and services, through to the provision ofthe UK's most comprehensive consumer business databases - The National Register(R) and the National Authentication Register - positions GB Group as a widelyacknowledged industry leader in its specialist markets. We are constantly improving business processes by building on our core values ofInnovation, Quality and Excellence. This is reflected in our customersatisfaction surveys and also through research, carried out by ManchesterBusiness School, which confirms our products are out performing the competition. GB Group plc has three complementary offerings: • DataAuthentication helps businesses validate personal identity information and provides anti-fraud solutions to fight crime. • DataIntegrity helps companies capture and maintain accurate customer contact data, an essential foundation for any profitable customer relationship. • DataSolutions empowers companies to consolidate and analyse customer data from various sources, enabling them to make better, more informed decisions. Established since 1989, GB's core competencies combined with industry sectorknowledge have enabled the company to deliver significant value to organisationssuch as Standard Life, Scottish Power and TD Waterhouse in helping them derivemaximum value from their customer data and sustain real advantage over theircompetition. GB Group is supported by its key relationships with major organisations withwhom it works with on major initiatives (an example being British Telecom),together with a team of highly talented and motivated staff successfullydelivering business solutions. GB Group plc is listed on the London Stock Exchange (www.gb.co.uk). This information is provided by RNS The company news service from the London Stock Exchange