Wednesday, 15 November 2006
Media Release
Re: GoConnect partnering with Universal Gaming in online poker
GoConnect Ltd (“GCN”) is pleased to announce the signing of an agreement with
Universal Management & Consulting Ltd (“Universal”) for the formation of a new
company (“Company”), which will be owned as to 75% by GoConnect Australia Pty. Ltd.
a wholly owned subsidiary of GCN, and 25% by Universal for the conduct of online
poker business, with the primary objective of targeting the Asian market.
Universal has been involved in online gaming for several years and operates several
online gaming sites, including the NutsPoker brand of online poker. Its other sites are
www.giantvegas.com , www.sierrastarcasino.com , www.royaldice.com, and
www.desroyaux.com.
Under the agreement with Universal, the Company will operate an Internet site (“the
Site”) of NutsPoker, aimed primarily at the growing Asian Market and will further
establish its own online gaming branded via www.pokergame8888.com. Universal will
operate the Site for the first 2 years, whereafter, operational management will revert to
the Company.
In return for securing 75% of the Company and the Company to be provided with a fully
operational online poker site, GCN has agreed to issue to Universal 5 million GCN shares
at 10 cents each subject to the Company achieving an agreed level of revenue. These
shares will be subject to an escrow of 12 months from the date of issue.
The recent ban on Internet gaming in the US has disrupted growth in the online gaming
and online poker industry. This has resulted in a greater business and marketing focus on
Asia by the gaming industry. Both GCN and Universal believe that Asia will be the next
major growth region for online gaming and in particular, online poker.
This is borne out by the recent announcement by WORLD POKER TOUR® (“WPT”) to
extend its footprint to Asia. WPT is one of the world’s two major tournament poker
brands and has syndicated its televised poker tournaments throughout the world. WPT
Enterprises Inc, owner of WPT, announced in early September 2006 that it had entered
into agreements with Macau Cable in Macau and MediaCorp in Singapore to air its
flagship show, WORLD POKER TOUR® . The agreement means that the WPT shows
now air in 154 territories. It is also widely known that the other major poker brand, the
World Series of Poker, has been keenly sought to host its tournaments in Asia.
With so much attention being focused on Asia by both land-based and online poker
companies, both GCN and Universal believe that Texas Hold’em poker will lift its
popularity in Asia significantly in the coming months, in the same manner that Texas
Hold’em poker boomed in North America in the past few years, leading to the
establishment of a vibrant listed online poker industry until recent legal enactments in the
US effectively spelt the end for online gaming in the USA. This has created huge
potential for the rest of the world, particularly Asia which presently, remains largely
untapped. Accordingly, both GCN and Universal are positioning themselves via the
Company to capitalize on the potential boom in Asian online poker games.
The Company’s online poker business is expected to be operational before the end of
calendar year 2006. Initial marketing efforts will be directed at SE Asia with China a
target for 2007. Due to legal restrictions, NutsPoker will not be available to Australian
residents.