09-05-2007 myBet.com to further expand its online service

The betting exchange also announced its intention to expand its franchise network of sports betting shops, while the parent company FLUXX said to be looking into the acquisitions of other sports betting operators in Southern and Eastern Europe.

During the first quarter of 2007, FLUXX reported a profit at EBITDA level of EUR 1.7 million, compared to EUR 0.5 million for the whole 2006. The progress was largely attributable to the sports betting segment and made up for the losses in the lottery segment following the termination of internet services in the German states of Schleswig-Holstein, Brandenburg and Mecklenburg due to the ongoing dispute over competition law.

In separate news, German online lottery Tipp24 reported a first quarter turnover of EUR 68.8 million, representing a year-on-year growth of 9.7%, with revenue growth of 9.4% to EUR 8.9 million and earnings before interest and taxes of EUR 2.2 million. Founder Jens Schumann commented: "The passing of the present Draft State Treaty would cause permanent damage to the growing market for the online brokerage of state lotteries. Against the backdrop of current developments in Germany and the EU, there is a growing number of politicians who have considerable reservations about the legality and political common sense of the Draft State Treaty. It seems that this view is also shared by the capital market, which has pushed our share price up 41% since the beginning of the year."

Under the proposed new German State Treaty on gambling, which has to be ratified by the end of the year, gambling providers will be required to obtain a license in each federal state where they want to offer their services. Despite the European Commission's criticism, it appears that a large majority of German states want to uphold the draft treaty as it stands.