SNG Online License Ruling Confirmed

Hanover/Vienna, 3 April 2008 - The Higher Administrative Court in Lüneburg today rejected the State of Lower Saxony's complaint against the denial of leave to appeal the ruling of the Administrative Court in Hanover in August 2007 on the operation of an online casino by Spielbanken Niedersachsen GmbH (SNG).

"The ruling is now final, and we will immediately begin preparations for the launch," said SNG Managing Director Rainer Chrubassik. Following the ruling of the Administrative Court and the official written statement received from the Finance Ministry last year, no further obstacles now stand in the way of the outstanding license being issued for the gaming platform.

In 2007, contrary to the opinion of the State of Lower Saxony, the Administrative Court in Hanover confirmed that SNG already held the concession to operate an online casino in the northwestern German state. The ruling had been preceded by legal action initiated by SNG against the State of Lower Saxony following the latter's unexpected refusal to issue the license for SNG's fully developed internet gaming site in February 2007. The Administrative Court in Hanover shared the SNG opinion that current applicable law did indeed encompass such a license. The Federal Constitutional Court ruling of 28 March 2006, cited by the Finance Ministry of Lower Saxony as the grounds for the refusal of the license, did not constitute a general ban on internet gaming. Even with the coming into effect of the State Treaty on Gambling, Lower Saxony's Gaming Act permits the operation of an online casino for and in the State of Lower Saxony.

"We are delighted that we will now be able to launch our internet gaming site," said Chrubassik. "The SNG online casino incorporates unique and exemplary security measures to protect players and minors. It is impossible to implement a ban on internet gaming sites. The clock cannot be turned back on the reality of the internet. Only licensed internet gaming sites can meet regulatory channeling requirements and prevent players from turning to illegal, unregulated sites. We are committed to these requirements," he concluded.