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Someday, legally betting on sports may be as easy clicking on a Web page. But that day isn't here quite yet

                                A tiny San Diego, Calif., company has cleared the first hurdle to bring legal sports betting online in the U.S.,
                                but only Nevada residents will be permitted to play. Virtgame.com (otc: VGTI - news) has received
                                permission from the Nevada Gambling Control Board to provide software that will allow Coast Resorts, a Las
                                Vegas-based casino operator, to offer online sports betting to its customers.

                                But even Nevada residents won't be able to just stumble into online gambling as they sip coffee in their
                                underwear and max out a couple of credit cards. As with Nevada's existing telephone-based betting,
                                gamblers must register in person at the casino and put down money up front before they can access a
                                secure computer server run by Virtgame. Once they have done so, they can gamble away their money at a
                                proscribed rate. Coast Resorts is limiting it at first to $1,000.

                                ``We have provided a solution for online gaming that can be regulated within the state, and that can be kept
                                in a legal environment,'' says Virtgame.com's Chief Financial Officer and Chief Operating Officer Bruce
                                Merati.

                                Coast Resorts' site provides an online foothold to legal sports betting, which is worth an estimated $80
                                million to $90 million, according to Christiansen Capital Advisors, an investment banking and money
                                management firm serving the gambling industry.

                                Dennis Neilander, a member of Nevada's Gaming Control Board, insists that Internet wagering in Nevada
                                remains illegal. ``We have approved a kind of technology that allows modem-to-modem wagering,'' he
                                says.

                                Merati and Neilander both emphasize that gambling is being done through Coast Resorts; Virtgame.com is
                                providing software that allows customers to connect with the casino. In order to use the site, a person who
                                has already registered with Coast Resorts connects to a secure server. Merati also claims his company won't
                                get rich off the deal.

                                Instead, Merati says that he sees it as a proof-of-principle that his company's technology, called ``e-border
                                software,'' can allow states to regain control over industries like gambling that were given free range by the
                                Internet. To that end, Virtgame.com has its eye on selling software to state lotteries.

                                For Virtgame, the gaming commission approval--and the recognition it could get from its work with Coast
                                Resorts--could not come soon enough. The company reported a net loss of $1.3 million for the first six
                                months of 2000 on revenue of $29,000. It had only $46,632 in cash on hand as of June 30 and had closed its
                                Antigua office and discontinued marketing its casino and sports book operations to focus on its Internet
                                gaming software application business.

                                Internet gambling is a worldwide industry that rakes in $1.2 billion worldwide, according to Sebastian
                                Sinclair, an analyst at Christiansen. Sinclair estimates that by 2002, the Net gambling business will be worth
                                $6.3 billion. Sinclair says new laws being discussed in Congress could shut the U.S. entirely out of that
                                market.

But Merati isn't worried. ``They can't do anything about what happens in Nevada,'' he says.

                                Brian Haggerty, editor of eGamingStocks.com, claims, ¡§The Internet Gaming Industry is a jewel just waiting
                                to be unearthed¡¨. The latest news emerging from eGamingStocks.com is straight out of their new report
                                ¡§eGaming: The next Pot-of-Gold¡¨.

                                In Haggerty¡¦s report he predicts that this industry can return thousands of percent on your money within the
                                next few years. High flying companies named in the report include, Online Gaming Systems Ltd. and
                                Poker.com. Companies like these have seen revenue increases between 300% and 8,000% within the last
                                year yet have not seen there accomplishments fully reflected in their share price.

According to Haggerty, ¡§No attention is being given to the industry on the part of Wall Street yet, which is
why you can buy into some companies for as little as 23 cents a share¡¨.

                                With the industry growing at an estimated 100% year-on-year Haggerty asks: ¡§Revenues from Internet
                                Gaming totaled $1.67 billion in 1999, and are estimated to reach 3 billion by 2002. ¡§How much longer can we
                                expect to see some of these stocks trade under one dollar?¡¨

                                There's a strange phrase, offline casinos. I am, of course referring to the brick and glass palaces that grace
                                Las Vegas, Atlantic City, Biloxi, Detroit, Reno and other gambling centers. There has been a perceptible
                                drumbeat of late about "unregulated online casinos". Undoubtedly the government/media propaganda
                                machine is gearing up to garner support for the Kyl bill (which is in serious trouble) and to alert the public
                                about the latest threat to their children: online gambling.

                                State governments from Nevada to Indiana have been using a variety of methods to try and stem this tide of
                                debauchery known as internet gambling. They claim their goals are purely altruistic, They want to save the
                                public (who doesn't know any better) from themselves. Why, some child may have stolen a credit card and
                                is, at this very minute, playing on an internet casino. Protecting their own 'legal' gambling venues (and the
                                tax revenues they generate) is, I'm sure, an afterthought. Anyone who believes that also must also believe
                                that Al Gore invented the internet.

                                The big knock on internet gambling is that it is "not regulated". We all know what terrible things can happen
                                when there is "no controlling legal authority". Trouble is, many offline casinos are not really regulated either.
                                For many casinos, there actually is no controlling legal authority and players have no idea if the games are
                                legitimate or what the slots payout is.

                                Casinos in Nevada, New Jersey, Mississippi and several midwestern states are very tightly policed and
                                regulated by the state authorities. Players are well served and can be confident of fairly conducted games
                                and accurate, published slot payouts.

                                The same cannot be said for dozens of Indian casinos which are operating with the blessing of state and
                                federal authorities. Many of these venues are totally "self regulated". I have been to Indian casinos where
                                the participation of the state or federal governments is limited to a plaque on the wall proclaiming that the
                                state has no regulatory interest in the casino. In other words, you are on your own, don't blame us if you
                                lose your money.

                                Some Indian casinos cover this lack of regulation by setting up "Tribal Gaming Councils" or "Tribal Gaming
                                Boards". These organizations are supposed to take the place of state regulation but they only serve to place
                                a patina of legitimacy on the operation. I have seen huge, new Indian casinos with adjacent offices for the
                                tribal council and the tribal gaming board. Who sits on these councils? Who is regulating these casinos? Who
                                is kidding who?

                                Don't get me wrong. I am not claiming that any Indian gaming is fixed. I am simply stating that the lack of
                                regulation, and published slot payouts does nothing to protect the player. In addition the laisser-faire attitude
                                of state and federal governments to Indian gaming puts the lie to their attempts to ban internet gambling. As
                                always the watchword is "let the player beware". You can patronize Indian casinos and have a great
                                entertainment experience. Just don't assume that you are getting the same high standard of regulation or
                                anything close to the same slot payouts as in Nevada or New Jersey.

                                      Windough.com (get the pun) is the new online sweepstakes that is sweeping the nation. Brothers
                                      Scott and Dan Kurland have gone online with a million dollar giveaway to expand their customer
                                      base, and it worked even better than they thought. It is an expensive idea for them, but a great idea
                                      for you. The company is offering a $500,000 grand prize and $500,000 in smaller prizes to lucky
                                      sweepstakes junkies.

                                      In the 18 months since the Kurand brothers started their zany scheme, the prizes have grown from
                                      an initial $10,000 giveaway to a $50,000 game and finally to where it is today. How did they do it?
                                      Simple, the attracted nearly 1,000,000 members through good old common generosity. As Scott
                                      says, ¡§We found a simple way to motivate a lot of people to sample e-commerce Web sites. We
                                      offered them a chance to win something for nothing.¡¨

                                      The idea was thought up as the brothers, both in their twenties, were watching the film "One Crazy
                                      Summer". In the film, one of the characters sit indoors for an entire summer waiting for a radio DJ
                                      to ask the one million dollar question. A strong business plan? Who can argue with hollywood?

                                      Reston, Va. ¡V Sandbox.com, a leading provider of interactive games, announced today that it has
                                      launched its new "Sweepstakes Channel" with the debut of Sand Lotto, a new brand of lotto for
                                      Internet users. The game, which is free to play, is a pick six lottery-style game that offers players a
                                      chance to win a $1 million daily jackpot. An additional $1 million will be divided between
                                      Sandbox.com members through a referral system and to the National Multiple Sclerosis Society,
                                      making the grand total $2 million per drawing.

                                      The launch of Sand Lotto signifies the company¡¦s expansion beyond the realm of fantasy sports
                                      games. In addition to the "Sweepstakes Channel," Sandbox recently released two other channels
                                      which go beyond the fantasy sports focus. The first is the new "Casino Go-Go Channel," which
                                      features free play-for-fun casino-style games such as blackjack, poker, roulette and slots.

                                      The "Sandbox Arcade" is the second new channel and offers 12 sports and classic arcade games.
                                      Sandbox also plans to launch a trivia channel within the next few months. In keeping with the
                                      Sandbox.com motto "Everybody Wins," all of the new games will offer participants the opportunity to
                                      win great prizes in addition to "Sand Dollars," the Sandbox.com currency which can be redeemed for
                                      prizes on the site. To win the Sand Lotto jackpot players must choose all six numbers ranging from 1
                                      to 54 correctly. Participants are permitted three entries per drawing. Sand Lotto is open to those 18
                                      years of age at the time of entry. All selections for that day¡¦s Sand Lotto drawing must be completed
                                      and submitted by 11:00 a.m. eastern time. Entries received after the deadline will automatically be
                                      entered into the next day¡¦s drawing. All submissions are final. The winning numbers are chosen
                                      promptly at 3:00 p.m. eastern time and immediately posted on the Sandbox.com website.

                                      "Up to this point, Sandbox.com has been committed to providing the best free fantasy sports games
                                      on the Internet, and we plan to continue that dominance," stated Bill Carey, chief operating officer of
                                      Sandbox.com. "We intend to extend our leadership position in fantasy sports into other game
                                      categories such as sweepstakes, arcade, and play-for-fun casino games, which will improve our
                                      overall product offering."

                                      Another benefit to all Sand Lotto players is the referral system. For example, if someone were to
                                      correctly choose all six numbers and win the $1 million prize, and an existing member referred them
                                      to Sandbox.com, the referring party would receive $500,000. In turn, if the referring party were also
                                      referred, that referring individual would earn $250k. The Sand Lotto referral process starts at $500k
                                      and is capped at five people ($500k, $250k, $125k, $75k, $50k), which can add up to an additional
                                      $1 million in Sand Lotto prize money. If a winner was not referred, the second $1 million pool would
                                      be donated to the National Multiple Sclerosis Society. If there is one referral, that person receives
                                     $500k with the remaining $500k going to MS. Once the referral process ceases, the left over money
                                      goes to MS regardless of denomination.

PLEASANTVILLE, N.J. (AP) - While corporate titans Carl Icahn and Park Place Entertainment Corp. battle to
win control of the bankrupt Sands Hotel & Casino, Al and Jodi Glenn continue to lose.

The Glenns, owners of wholesale fish seller Randall's Seafood, have been holding a bill for $7,096 ever since
the casino filed for bankruptcy protection 2 1/2 half years ago.

"You do business with the Sands, you figure 'Here's a casino that's been in business for years, they're big
enough to pay their food bills,"' said Al Glenn, 34, shaking his head. "We were wrong."

The couple and their business were among hundreds caught in the middle as the Sands sought protection
from its creditors. The idea was to keep the doors open, the dice rolling and the slot machines jingling.

But small businesses like Randall's Seafood suffered in the meantime. Some were owed as little as $25,
some as much as $600,000.

"It's almost three years since many of them have been paid a dime (by the Sands)," said Eric Browndorf, a
lawyer for the casino's unsecured creditors committee.

Vendors, bondholders and other claimants had until 5 p.m. Monday to submit ballots containing their votes
for either Icahn or Park Place, which have submitted competing bids to take over the 532-room casino.

About 1,500 merchants are owed $6.7 million by the casino, which filed for protection under Chapter 11 of
the U.S. Bankruptcy Code on Jan. 5, 1998.

Icahn plans to invest $65 million in the troubled property and issue $110 million worth of new bonds; Park
Place has proposed investing $40 million and issuing $128 million in bonds.

Whoever wins the vote is expected to gain control of the casino. A confirmation hearing is scheduled for June
20 before U.S. Bankruptcy Judge Judith Wizmur in Camden.

The resolution can't come too quickly for the Glenns. Like other unsecured creditors, they were left holding
debts.

The couple bought Randall's Seafood in June 1997, taking over a small six-employee business that sits on
the waterfront of Lakes Bay, just across the salt marshes from Atlantic City.

Buying directly from fishing boats and clammers, Randall's Seafood sells to restaurants, retailers and
casinos.

They sold a small amount of oysters and flounder to the Sands for the first six months they owned the
business. Then in December 1997, the Sands was suddenly their best customer.

The casino ran up a $7,000 bill in just one month. The Glenns thought they'd hit it lucky. Then the bottom fell
out. They picked up the newspaper on Jan. 6, 1998, to learn the casino had filed for bankruptcy.

                                "You would hear they had a bad quarter, but we thought nothing of it. I guess were out of the loop," said
                                Jodi Glenn, 28. She suspects that the sudden increase in sales was a result of the casino's other seafood
                                vendors being warned beforehand that bankruptcy was imminent.

The big IOU spelled trouble. The couple had just bought a new refrigerated truck and was contemplating
adding refrigerating space in the building.

Randall's Seafood had no collateral to show for its $7,096 - and dim prospects for recovering it. After all,
says Al Glenn: "You can't repossess something that's been eaten."

The couple didn't have to lay off any employees, but the business has still barely recovered from the loss,
the Glenns said. "When you're small, it hurts a lot more than when you're big," Jodi Glenn said.

Meanwhile, they waited as the casino and its employees continued to get paid and the U.S. Bankruptcy Court
agreed to let the Sands spend $20 million on renovations while the case dragged on.

                                As unsecured creditors, the Glenns have a say in who takes over the casino next, though. They voted for
                                Park Place Entertainment, gambling that the company's track record and local ties will bode better for them
                                and other Atlantic City businesses than would Icahn's.

Indian tribes lead the way, spending $8.6 million in three years, according to Common Cause

                                SACRAMENTO -- Spurred on by hefty contributions from Indian tribes, the gambling industry has superseded
                                all other industries and organizations in the amount of political donations it makes directly to legislative
                                candidates and elected officials, according to a study released Monday.

                                The nonpartisan government watchdog group Common Cause released the study, which shows the dramatic
                                increase in the money contributed by Indian tribes, Nevada casinos, card rooms and horse racing tracks from
                                1995 through 1998.

                                The tribes not only contributed $8.6 million to state candidates, but financed two voter initiatives on Indian
                                gambling and boosted their lobbying spending by 370 percent during that period, according to Jim Knox, the
                                executive director for California Common Cause.

"We saw the Native American tribes emerge from virtual invisibility at the state Capitol, becoming not only the
strongest segment of the gambling industry but perhaps the top donor of any kind in California," Knox said.

                                In addition, Common Cause asked the state's Fair Political Practices Commission to investigate 322 alleged
                                campaign reporting violations in which $1.5 million in contributions were inaccurately reported or not
                                reported at all.

"We have never seen, frankly, in all research that we have done over the years, such widespread lack of
compliance with our basic campaign reporting laws in California," said Knox.

                                By law, those who make political contributions of $10,000 or more in a year must file a report with the
                                Secretary of State. Also, legislative candidates and elected officials must itemize campaign contributions they
                                receive of $100 or more and include them on their reports with the state.

Titled "Stacking the Deck," the study said the gambling industry contributed $15.8 million from 1995 to 1998,
with Indian tribes leading the way by giving $8.6 million.

                                Other top political donors pale in comparison. In the same period, the California Teachers Association spent
                                $4.8 million, the California Correction Peace Officers Association $3.5 million and the Consumer Attorneys of
                                California $2.3 million.

                                The spending by the Indian tribes appeared to pay dividends. After the California Supreme Court struck down
                                Proposition 5, the initiative backed by Indian tribes and approved by voters in 1998 to widen Indian gaming,
                                Gov. Gray Davis and the Legislature devised a constitutional amendment last September to do much of what
                                Prop 5 aimed to do.

                                Then the Legislature voted to give the measure a 1A designation, rather than letting it fall in the middle of the
                                ballot as Proposition 21. Many political strategists believe putting an initiative at the bottom of the ballot hurts
                                its chances for passage.

                                "The fact the legislators also passed, and the governor signed legislation to grant the measure special
                                placement at the top of the March ballot raises questions about whether favorable ballot positions are now
                                for sale by the Legislature and governor," the study said.

                                The campaign spending shows Indian tribes had a three-pronged strategy, the study said. First, tribes
                                circulated the initiative that became Prop. 5 and spent heavily advertising for the measure. In the end, the
                                tribes spent $68 million on the Prop. 5 campaign alone.

At the same time, the tribes contributed heavily to legislative candidates and boosted their lobbying efforts.
They gave, regardless of party, to incumbents, winners and legislative leaders.

                                But Bruce Cain, a UC Berkeley political science professor, said that while the contributions seemed to pave the
                                way for action favorable to the tribes, no amount of money can persuade politicians to do something voters
                                don't like. The tribes won in the court of public opinion with the passage of Prop. 5, he said.

"It was basically win-win for politicians," Cain said. "If the public doesn't want it, (the money) doesn't have a
greasing effect."

The study's other findings aren't particularly surprising, either, Cain said. The lack of compliance with
campaign reporting guidelines, approved as part of the Political Reform Act of 1974, is a problem, he said.

While the large increase in contributions from the Indian tribes is new, the efforts by gambling industry to
influence legislators are not, Cain said.

"Gambling has always been a major player in California politics," Cain said. "It was the race tracks before.
Basically, what has happened is it has broadened to include another set of players, the tribes."

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