Online Gambling Site Hit With Staggering $10 Million in Losses
- Betting firm was started by son of successful hotelier and former GAA player
- Company warns of potential closure if it is unable to seek additional cash
- Expenses soared to almost $517,000 in the last quarter from $107,000
- The company continues to explore various financing alternatives
An online gambling website is seeking outside investment money after being hit with accumulated losses of almost $10m (€8.8m).
Seaniemac was started by Sean McEniff, son of Donegal hotelier and former GAA player Brian McEniff. It trades on the over-the-counter market in the United States. Sean McEniff remains on as a shareholder but is said to no longer be directly involved in the company after stepping down in 2014 to focus on the family’s hotel business.
Investors include Rina and Diana Chernaya, daughters of Russian aluminium businessman Michael Chernaya.
Seaniemac has warned that if it is unable to obtain additional cash it will cease operating.
The Independent painted a gloomy picture for Seaniemac:
The latest quarterly report from Seaniemac International shows that the group generated gross gaming revenue of $218,456 in the three months ended in June. That compared to $45,910 in the quarter to the end of June last year.
But expenses soared to almost $517,000 in the last quarter from $107,000, while its interest expense, including the amortisation of loan costs, also jumped. It rose to $586,000 from just under $71,0000.
That left the group nursing a $911,000 loss for the quarter and brought its accumulated losses since Seaniemac's launch in 2013 to more than $9.4m.
The company targets customers in Ireland and the UK and had previously been using the Boyle Sports betting system but intends to launch its own product next month, presuming Seaniemac can survive that long.
It currently redirects to another website Apollobet.com, owned by businessman Paul Antrobus. Apollobet has also suffered losses of £260,000 in the past year.
"Management intends 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," according to its latest set of results.
"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.
"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," it warned.
- Aaron Goldstein, Gambling911.com
