DFNN unit betting on Cambodia’s gaming industry

The gaming unit of listed information technology solutions provider Diversified Financial Network Inc. (DFNN) is eyeing to invade the Cambodian gaming industry with the planned acquisition of a slot machine arcade operator subject to the completion of a financial due diligence.

 In a disclosure to the Philippine Stock Exchange, DFNN said its Singapore-based subsidiary Pacific Gaming Investments Pte. Ltd. has entered into a memorandum of understanding with a Cambodian-based slot machine arcade operator in line with its main goal of strengthening its presence in the Asian gaming industry.

“The MOU allows PGI to begin the legal and financial due diligence prior to proposing an acquisition structure. One of the main hurdle rates in the financial due diligence is for the arcade to have produced $1 million in profit in the six months from July 2007 to December 2007,” DFNN said.

According to DFNN, the due diligence is expected to be completed in three weeks.

DFNN noted that Cambodia has been attracting a lot foreign investments and tourists. Last year, Cambodia had 1.7 million foreign visitors, 20 percent higher than the previous year.

PGI recently acquired a 33.33 percent interest in Interactive Entertainment Technology Solutions (IETS) for roughly $2.5 million.

IETS was incorporated to engage in the business of providing software and solutions for the gaming industry. It is involved in event, sports and financial spread betting and has contracts to provide equipment and software to state gaming regulator Philippine Amusement and Gaming Corp. (Pagcor).

Financial spread betting is another area that shows huge potential for the company. By far the largest portion of wireless betting in the United Kingdom concerns financial instruments. Investors use their cell phones to bet on movement of a stock, currency, or commodity almost anywhere in the world. Bets are small but returns are large.

Leading spread-betting companies such as IG Index/IGMarkets, City Index, Cantor Index, Financial Spreads and CMC, make most revenues from the financial markets.