Legal action by Gaming VC (update)

One element in the dispute turns on whether Italian licence was still in force

Further details are emerging on the recent shock news that Gaming VC has commenced litigation in Malta seeking damages from Boss Media and parentGTechG2, and it appears that a question of Italian licensing is a key element in the dispute between the companies.

In previous reports InfoPowa indicated that part of the issue between the companies concerns a software contract cancellation by Boss Media in respect of Gaming VC's Italian activities. In December 2009 Gaming VC sold its Italian licensed business Betpro, and it has apparently conceded in subsequent official documents that as a consequence it no longer possessed an Italian licence.

Because there was no Italian licence, Boss apparently terminated its software contract concerning its products offered in Italy, which impacted another Italian-facing Gaming VC business branded This allegedly placed a significant amount of business in jeopardy, because the company's Italian players reportedly represent 39 percent of that company’s total net gaming revenue.

In its latest financial results (see previous InfoPowa report), Gaming VC noted that over 50 percent of Betaland's revenues were generated on games that are probably powered by Boss Media software.

Gaming VC continues to claim that its judicial reaction is justified on the grounds that the Boss termination correspondence does not fulfil the termination requirements as set out in the licence agreements currently existing between the two companies, and should therefore be considered unlawful.

The other element in the Gaming VC vs. Boss dispute concerns what the online casino operator claims is a misuse of its database. This is centred on Gaming VC allegations that “certain third parties” obtained unauthorised access to its customer database and had been “unlawfully targeting Gaming VC Corporation’s customers, thereby causing Gaming VC Corporation very substantial damage”.

Gaming VC went so far as to claim that “employees and/or representatives” of Boss Media Malta Casino, Boss Media and/or St Miniver" had been involved in this questionable activity.

In response, GTechG2 has advised that as far as the database dispute is concerned, the warring companies have commenced an arbitration process and it therefore declined to comment further.

Boss and Gaming VC have in the past enjoyed a long business relationship that has been in place for a number of years.

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