NEW YORK, March 24, 2011 /PRNewswire/ -- Elray Resources, Inc (OTC Bulletin Board: ELRA) - Elray announced it has provided some revenue and operational guidance for their new online gaming division, Elray Gaming.
On February 21, the Company acquired Splitrock Ventures BVI, an online gaming business which owns and licenses Gaming Intellectual Property, Gaming Domains, Trademarks, and Player Databases.
The following are some of the brands currently being run under the Elray Gaming umbrella: Sierra Star Casino, Majestic Comet, Lottery Domain, Dollar Dazzlers, Jackpot Cafe, and Lucky Lucy Bingo. These brands are currently available in English, French, German, Italian, Japanese and Russian.
Operational and Revenue Guidance
For 2011, the Company is projecting total gaming proceeds of $100 million, of which the company would recognize $6.5 million in gross revenues, and $1.1 million in net income.
For 2012, the Company is projecting total gaming proceeds to increase to $320 million, of which the company would recognize $8.8 million in gross revenues, or $3.4 million in net income.
These projections do not take into account any new acquisitions or gaming products launched by the company during this time period. Investors are advised that these are projections, and in such final results way differ greatly based on operational events and risks.
Elray has a highly experienced management team under the leadership of Brian Goodman the new CEO, having been in the industry since 2004.
Compliance with US Gaming Laws
The Unlawful Internet Gambling Enforcement Act of 2006 ("UIGEA") precludes financial transactions related to online gaming in the United States. Players in the U.S. are therefore legally precluded from participating in online gambling.
Elray's business model is to offer Internet Gaming Products to non-US players in jurisdictions where online gaming is permitted and consequently will be well positioned to establish gaming operations in this potentially lucrative market.
The Company understands the importance of developing a strong communication line to its shareholders. Thus, the company has established a corporate website www.elraygaming.com to reflect the new operations.
ELRA is fully reporting company under the Securities and Exchange Act of 1930, and investors can review our filings online by going to www.sec.gov
Elray is an established Global Online Gaming entity which owns and licenses Gaming Intellectual Property, Gaming Domains, Trademarks and Player Databases. Operations are headquartered in Curacao, Netherland Antilles and maintain offices, representatives and support facilities in the United States, United Kingdom, Australia, South Africa, Mauritius, Israel and the Philippines. Elray's business model is to offer Internet Gaming Products to non-US players in jurisdictions where online gaming is permitted.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements relating to financial results and plans for future development activities, and are thus prospective. Forward-looking statements include all statements that are not statements of historical fact regarding intent, belief or current expectations of the Company, its directors or its officers. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company's ability to control. Actual results may differ materially from those projected in the forward-looking statements. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties associated with the Company's business and finances in general, including the ability to continue and manage its growth, competition, global economic conditions and other factors discussed in detail in the Company's periodic filings with the Security and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements.
SOURCE Elray Resources, Inc.