LV company in forced sale of Internet sportsbook

Friday, Feb. 2, 2001 | 10:51 a.m.

American Wagering Inc. of Las Vegas today announced it has signed an agreement to sell its Australian Internet-based sports book as required by a settlement with the Nevada Gaming Control Board.

AWI said it has agreed to sell MegaSports of Canberra, Australia, to Forward Publishing, a new corporation controlled by Australian businessman Nimrod Nyols. The sale is expected to close shortly after Forward Publishing is licensed by Australia Capital Territory gaming officials, a process that could take anywhere from 60 days to six months, said Tim Lockinger, chief financial officer of AWI.

The sale price is not currently being disclosed, though AWI said Forward Publishing has put up a non-refundable deposit of 250,000 Australian dollars ($138,000). Nevada gaming officials have been kept appraised of the sale process, but their approval is not required for the deal, Lockinger said.

AWI agreed to sell off MegaSports last July as part of a settlement with the Nevada Gaming Control Board. The control board's complaint against AWI was filed after an undercover control board agent successfully placed 12 wagers on MegaSports. The site's official policy does not permit bets to be placed from the United States; Nevada law specifically prohibits the placement of interstate bets over the Internet. AWI also agreed to pay a $10,000 fine.

The control board can grant AWI extensions of up to 180 days to complete the sale, which will allow the site to remain in business while the sale is completed.