Casino operator eyes Internet gaming business

Friday, Aug. 11, 2000 | 10:42 a.m.

Lakes Gaming Inc. announced it is actively considering establishing an Internet site devoted to the "international Internet gaming" industry.

Lakes said it is in negotiations with a "experienced provider of online gaming technology" to license software that would be used by the Lakes online casino sites for a two-year period. Lakes emphasized bets on the proposed site would not be accepted from within the United States.

"We just think (online gaming) is a good future growth story," said Lakes Chief Financial Officer Tim Cope. "We felt it was a good opportunity to get in on the ground floor of an up and coming business."

Lakes also said it is considering entering the "life insurance settlement" business as part of efforts to diversify beyond gaming. Lakes would use a $150 million credit line to purchase life insurance policies from persons over the age of 65 who wanted to receive capital from their outstanding policies.

In a settlement with the Nevada Gaming Control Board, Las Vegas-based American Wagering Inc. agreed to sell off Australian subsidiary MegaSports, which unintentionally accepted a bet from an undercover control board agent last year. MegaSports, like the proposed Lakes site, does not accept bets from Americans.

Lakes is an operator of tribal casinos, but does not have any gaming holdings in Nevada.