32 Red which is one of the most respected by players online casinos and poker rooms on the Internet, and which is owned by the Trafalgar group, has recently received a considerable infusion of money following the placement of approximately 4 million ordinary shares with new institutional investors, which represents eight 8 percent of its stock.
The new 32Red shares were valued at 140 pence each, in a deal brokered by Numis Securities. The reason for the deal was to raise GBP 5.3 million. The money has been set aside for the future expansion of the online casino and poker room, through marketing.
The issue of 3,766,500 new ordinary shares was involved in this placement. This is equivalent to about eight percent of the company’s present ordinary share capital. It will increase liquidity and widen 32 Red Online Casino’s shareholder base. The earnings are to be used for the development of the marketing program, and the company is continuing to look at opportunities for acquisitions within the online gaming industry.
Ed Ware, 32Red’s Chief Executive Officer, when commenting on the announcement, said that it has been the company’s intention, since its last September admission to AIM, to broaden the shareholder base and to raise capital to for investment in 32Red’s projected growth.
He said that the company is delighted to be able to raise these funds, saying that they will enable them to step up their focused marketing program and to enhance 32Red’s brand recognition and profile. The added capital will give the company increased resources according to Ware, that can be used to pursue strategic acquisitions that the company believes would complement the existing offerings of 32Red.
Public Health Officials Against Loto-Quebec Gaming Lounges
Quebec is the latest Canadian province to attempt to expand the marriage of thoroughbred gambling and lottery tickets, despite opposition from public health officials who say that doing so will only cause increased gambling addiction and a host of other social ills and familial troubles. Loto-Quebec – the government-run betting monopoly in Quebec – is the force behind the movement to introduce lottery ticket terminals at horseracing facilities.
Loto-Quebec’s plan is to construct three gaming lounges in the immediate vicinity of harness racing tracks in Quebec, as well as a fourth gaming lounge at the popular East North American ski resort, Mont Tremblant. All four gaming lounges will contribute an additional 1,770 video lottery terminals to the preexisting count of 430 already available at existing racetracks.
Among those who are opposed to the gaming lounges are seventeen public health officials, including the Outaouais Medical Officer of Health, Dr. Luci Lemieux, who has openly expressed concerns that additional lottery terminals will incite more gambling addiction, thus resulting in proven repercussions of unemployment, indebtedness, broken familial ties, divorces, and even suicide. Dr. Lemieux seems to be most concerned with the likelihood that Lot-Quebec will market the gaming lounges as family entertainment, which would increase the rate of underage gambling.
Loto-Quebec spokeswoman, Marie-Claude Rivet, said the government will take Dr. Lemieux’s and other medical officers’ warnings into consideration. Since first introducing lottery ticket terminals to harness racing facilities, the government says there are no reports verifying an increase in problem gambling.