When it comes to games and gaming be careful to get the context right when reading announcements and presentations. Social games such as Farmyard Heroes, Candy crush and fantasy games are all social games. If these are skill based and rated as such they can be monetised and sold via download and subscription etc without requiring licences.
Gaming as gambling is all about what is chance versus skill. Chance based games are gambling and require a licence of some sort in most situations where money consideration is involved.
Bingo for instance is a chance game and requires a bingo gaming licence or lottery licence and these apply State by State or Nationally. The gambling games require some form of interactive gaming licence which are issued by jurisdictions such as Malta, Gibraltar, Norfolk Island, Northern Territory, and a few dodgy ones such as the Phillipines and parts of Asia where licences are seen to be issued for money without proper due diligence of applicants.
A tech company such as TV2U would not likely get an interactive gaming licence as the management are not industry players and may struggle to qualify to pass the criminal, character and experience checks to get an issued licence.
They would need to partner with a valid entity who possesses such licences, and these licences would need to be global jurisdiction, or the TV2U technology would need to geo-lock broadcasting to one country or State to comply with restricted licences that apply regionally.
Any company that does the pirating approach runs the risk of legal sanction. A listed ASX company could not engage in partnership with a pirate entity in this way without being prosecuted. Gambling gaming is a highly regulated industry and the online realtime streaming of casino games and other Betertainment experiences by tech companies cannot be offered to the market without possession of the appropriate licences in place.
Hopefully TV2U as it moves forward aligns with the correct entities who possess valid licences to conduct such a business. There are numerous pirate tech companies in all parts of the world without valid licences and they would be keen to use advanced TV2U technologies to reach audiences from offshore where law enforcement is hard to execute.
There are estimated to be over 300+ pirate betting websites running today running without valid licences targeting Australian punters. Lottospring have just tried such a stunt here in Perth from offshore in the Phillipines and LotteryWest and the ACC put out warnings about them being dodgy.
My relative who was the ex-CEO of TV2U is now consulting for an advanced Betertainment tech company in Perth grappling with these issues right now with digital entertainment and gaming. They have to confront a minefield of issues in terms of understanding how to go about executing business models online in the future in Australia as well as researching places such as China and India which still outlaw most forms of gambling online.
DYOR.
TV2 Price at posting:
1.8¢ Sentiment: Hold Disclosure: Held
