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DFNN subsidiary buys stake in betting company(Business World (Philippines) Via Thomson Dialog NewsEdge) Publicly listed IT solutions provider and systems integrator Diversified Financial Network, Inc. (DFNN) has acquired a 33.33% stake in a Southeast Asian gaming company through its Singapore-based subsidiary. In a statement, the company said it bought into Interactive Entertainment Technology Solutions, a gaming company involved in event betting, sports betting, and financial spread betting, for $2.5 million. The purchase, it said, was done through subsidiary Pacific Gaming Investments, Inc. DFNN said the purchase has given Pacific Gaming management control of Interactive Entertainment. It has an option to acquire the remaining 66.67% stake. "Pacific Gaming has also begun due diligence on a number of cash flow- positive and operational slot machine arcades in Cambodia and the Philippines with the end goal of acquiring these arcades," said DFNN Chairman and Chief Executive Officer Ramon Garcia, Jr., who is also chairman of Pacific Gaming. Mr. Garcia said that wireless sports betting has been growing at a phenomenal rate in Europe, but was still somewhat absent in the Asian market. DFNN, through the subsidiary, will provide the gaming software expertise and marketing tie-ups in various Asian countries. Mr. Garcia also said financial spread betting, a common practice in the United Kingdom, was another area that shows great promise for the company. "Investors can use their cell phones to wager on the movement of a stock, currency, or commodity almost anywhere in the world. Wager amounts are small, but can offer large returns," he said. DFNN has also begun negotiations with a leading global financial institution to be the software and marketing provider for Asia. "Soon investors in Hong Kong for example, could be wagering on Australian horse racing, the Japanese Yen, and regional stocks all on their wireless devices. This market could provide a very major business opportunity for DFNN in Asia," said Mr. Garcia. The company said it would continue to invest in its innovative gaming technologies to deliver new content through technology that would maximize its gaming revenue stream. DFNN's gaming solutions span the capability for wireless gaming, game creation, and gaming-related project management, marketing, and software outsourcing. Its gaming products are catered to the needed business processes of legal gaming entities operating in legal gaming jurisdictions. The company also has shareholdings in Hatchasia, Inc. and Intelligent Wave Philippines, Inc. Copyright 2007 Business World Publishing Corporation, Source: The Financial Times Limited |