The international Internet gambling dispute, potentially valued at billions of dollars, continues. Costa Rica and Antigua separately filed for World Trade Organization (WTO) arbitration on January 28, seeking compensation from the United States as a result of the U.S. withdrawal of its commitment on cross-border gambling services. The new arbitration requests could potentially derail the settlement for compensation agreed to late last year by the U.S. and the E.U.

A new tax revenue analysis announced by Representative Jim McDermott (D-WA) estimates that regulating Internet gambling would generate between $8.7 billion to $42.8 billion in federal revenues over its first ten years. The findings of the analysis, prepared by PricewaterhouseCoopers, were provided to all Members of Congress by McDermott earlier this week.

Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI.OB) today reported its audited financial results for its fiscal year ended September 30, 2007. Revenues for the year were $500,000, as compared with only $111,000 during fiscal 2006, an increase of 350%. Net loss and net loss per share applicable to common stock (basic and diluted) for fiscal 2007 improved to $2,421,000 and $0.20, respectively, as compared with $4,721,000 and $0.40, respectively, during fiscal 2006. This decrease of 49% in the net loss applicable to common stock in fiscal 2007 is primarily due to lower expenses and increased revenue and other income.

Interactive Systems Worldwide Inc. today announced its wagering volume for the month of December 2007 from the operation of its SportXction(R) system in the UK.

Paddy Power pay out on Barack Obama as Democratic Nominee

U.S. Regulation of Internet Gambling Needed to Resolve Dispute

Microsoft Corporation, Google, Inc., and Yahoo! have entered into settlements with the U.S. to resolve claims that they promoted illegal gambling, United States Attorney Catherine L. Hanaway, of the Eastern District of Missouri announced today. The total amount of the three settlements is $31.5 million in value to the United States.

As the contentious trade dispute between Europe and the U.S. over Internet gaming industry continues, the British Government said it favored regulation of Internet gambling as opposed to prohibition.

Interactive Systems Worldwide today announced that it has signed an Agreement in Principle with Neptune Race and Sports Book. This non-binding agreement provides the commercial framework for an anticipated licensing agreement to be negotiated between the two parties for the use of the Company's patented SportXction(R) sports wagering software.