us online gambling finds house support, page-3

Hi Frank,
Presently Mike and the team are over in the US attending the Indianapolis lottery conference and the team have been attending most of these US lottery conferences for some time now - all been part of their US expansion plans and as part of the process they have got to know all the US state lottery operators very well and they have also got to know Mike, the team and their business model very well....According to Mike they love the aussies and seem more willing to want to do business with aussies than with their european counterparts

As you know the financial position in most of the US states is not flash and that is where JIN has a great advantage because they are not asking for big upfront costs to get up and running. JIN are simply adopting the same business model used here in Australia, of using their own developed software and then taking a percentage of each lottery ticket sale. Many of JIN's competitors have significant upfront and ongoing software costs which is not all that attractive to the cash strapped US state governments.

IMHO, with the US online gambling legislation about to change I can foresee that JIN will probably do deals with a number of US state lottery operators....should be very big!!

Todays announcement on the sale of unmarketable share parcels seems quite interesting - the last time this happened was back in Nov 2004 just prior to a series of positive announcements culminating in the purchase TMS(online retailer of lottery products....todays flagship)....it was also a stellar time for the shareprice reaching an all time high in todays terms of approx 90+ cents.
Maybe we are about to experience this once again - currently the company, with a shareprice of 30c,is trading on a P/E of 2.44 so a shareprice of 90c still only equates to a P/E of 7.35, not outrageous given that when they breaktrough in the US they will have alternative revenue streams online