MAINSTREAM MEDIA PICK UP ON ONLINE CASINO OPERATOR'S WOES
18th August, 2016 at 17:13:03
Seaniemac has reportedly accumulated $9.4 million in losses.
Seaniemac, an over-the-counter US penny stock company which entered the online casino sector in 2013, attracted the negative attention of the mainstream Independent newspaper this week as it attempted to raise new capital.
The newspaper noted that since the company launched in 2013 under the management of Sean McEniff, son of a successful Irish hotelier, it has accumulated losses of $9.4 million, in the last quarter reporting expenses of $517,000 - a $410,000 hike on the preceding quarter.
The Irish and UK-facing company is trying to raise additional financing, but has warned that it may have to halt operations if it is not successful.
Although Sean McEniff remains a shareholder, he is understood to no longer be involved in the day to day management of the company after stepping away in 2014 to work on hotel projects.
The independent claims that investors in Seaniemac include the daughters of a prominent Russian businessman, Michael Chernaya.
Analysing the company's performance, The Independent notes that the latest quarterly shows that the group generated gross gaming revenue of $218,456 in the three months ended June. That compared to $45,910 in the quarter to the end of June 2015.
However, expenses soared and interest charges, including the amortisation of loan costs, also rose, leaving the group with a $ 911,000 loss for the quarter and bringing its accumulated losses since launch in 2013 to more than $9.4 million.
Seaniemac recently announced that it intends to abandon the Boyle Sport betting platform it has been using in favour of its own product, presuming that the company can survive long enough to do this.
The Independent reports that the company's website currently redirects to Apollobet.com, owned by businessman Paul Antrobus and also posting losses of £ 260,000 last year.
Seaniemac management's last report advised that the plan was to finance operating costs over the next 12 months with "existing cash on hand, loans from stockholders and directors, and a possible private placement of our securities."
"The company continues to explore various financing alternatives, including debt and equity financings and strategic partnerships, as well as trying to generate additional revenue," it added, but warned:
"If the company is unable to obtain additional funding and improve its operations, the company's financial operations may be materially adversely affected and the company may not be able to continue operations."
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