eBet expands into Europe with wide area progressive jackpot deal

The agreement is a sales, revenue participation and support agreement for outright sale of the Octavian ACP WAP jackpot system equipment; on-going revenue participation as a percentage of total turnover generated from WAP operations; and service and maintenance support fees whilst the WAP is operational, or for the five-year term of the agreement, whichever is longer.

The contract sales value, estimated to be in the range of us$ 500 k to us$ 650 k is payable prior to shipment. Recurring revenue, based on connection of 1,500 gaming machines, is estimated at between us$ 1.1 million and us$ 1.6 million per annum, subject to the overall turnover generated by the WAP system.

This agreement provides Eurom Jackpot SRI with exclusivity for the ACP product in Romania subject to achieving and maintaining connection to a minimum of 1,500 gaming machines to the WAP system after an initial ramp-up period.

Where eBet/Octavian has an existing customer arrangement, the Eurom Jackpot SRI Agreement allows eBet/Octavian to supply and support those customers direct.

Group Managing Director, Tony Toohey, said: “The Romanian contract represents a significant development in the expansion of eBet and is consistent with our strategic objective of expanding our presence globally and increasing our overall recurring revenues”.

This agreement would not be possible without the technology and the global reach which Octavian International brings to eBet. The Eurom Romania opportunity combined with other similar opportunities in the pipeline will make a substantial contribution to our financial year 2008 results.

Being able to capitalise on this immediate opportunity in Romania further illustrates that eBet's ability to optimise future earnings potential and add value to the company is being substantially enhanced by the Octavian transaction."