IRVINE, Calif.—Mobile information service provider AskMeNow is betting on mobile gambling, announcing an effort to acquire Australian betting firm Karrell Pty Ltd.
AskMeNow, a subsidiary of Ocean West Holding Corp., said it plans to spend about $29 million in stock and cash for Karrell, which provides wagering services under the name Capital Play Pty Ltd. Capital Play provides access to North American horse racing pools, generating $25 million in revenue and $1 million in net income in the last 12 months, the companies said. AskMeNow said it will offer mobile and wireless gambling products through the acquisition.
The acquisition is slated to close within 60 days.
AskMeNow provides local listings and other information to users who call or send a text message from a mobile phone. While some information incurs an automatic charge—”basic” questions are answered free—the company hopes to generate revenue by delivering wireless advertisements.
Federal regulations prohibit virtually all wireless gambling aside from in-casino wagering, which is being developed in Nevada. But the application is quickly gaining traction in the United Kingdom and other, less-restrictive markets, and many expect the United States to loosen regulations in coming years.
A report released last year by consultant firm Mintel International predicted mobile betting will become a $3 billion industry in the United States by 2009.
“As we continue to expand worldwide through an ever-increasing customer base, AskMeNow will continue to introduce outstanding content such as gaming, one of the most popular areas of content on the Internet,” said AskMeNow Chief Executive Officer Darryl Cohen.
