Effectively stopped in its tracks by an Australian Government ban on new Internet gambling operations, the listed Gocorp Ltd has joined forces with another Net casino that is not subject to the moratorium.
regulated by the Northern Territory government and escapes the Federal Government’s one-year ban on new Net gambling licenses.
The one-year ban on new Net gambling licenses was hotly criticized by both the Internet industry and the states, who are responsible for licensing all of Australia’s legal (and common) bricks-and-mortar gambling establishments.
Lasseters was licensed before the backdated ban and so escapes its effects. But the Federal Government has made it clear it wants to outlaw Internet-based operations totally. For this reason, Lasseters is already prepared for a move overseas if necessary.
Lasseters Holdings Ltd will hold 75 percent of the merged company after the transaction, with current shareholders holding the remaining 25 percent.
The terms of the transaction call for Gocorp to acquire 100 percent of the equity in Lasseters Online (a division of Lasseters Holdings) and then issue three shares in the new, merged operation for every one share in Gocorp.
“The proposed merger makes good business sense, because it injects the resources and capital Lasseters needs to support its global expansion,” said Lasseters Holdings Managing Director, Peter Bridge.