Jackpot in bid for gaming partner

By PETER GRIFFIN IT writer

New Capital Market company Feverpitch has gone to the online gambling mecca of Costa Rica for its first major joint venture partner.

Feverpitch has joined betting software developer iNet in a move indicating early success for the company's altered business strategy.

In a royalty-sharing deal, the two companies will combine their software, offering iNet's online gambling operator customers a system that allows player to player betting.

Feverpitch has been developing its FVR Pro software for the past 18 months with backing from high-profile investors including former All Black coach John Hart.

The software enables gamblers to place bets in competition with friends or other users through an internet portal.

The Auckland company had intended to launch its own internet portal in competition with similar established companies in Britain.

But in May, it told shareholders that less money had been raised through listing on the New Capital Market than expected, and Feverpitch would concentrate on software development, licensing betting technology to online operators.

Feverpitch managing director Derek Handley said that after raising only $1.7 million through the NCM the company had gone overseas to obtain more more.

"We secured a commitment for money in Hong Kong, but shortly after the Government there banned internet gambling so our investor pulled out."

Handley then hit the road, travelling to Las Vegas to search for potential business partners.

He said money would probably be paid upfront to Feverpitch as a result of the partnership, but revenue from the deal would depend on interest from customers, which he said was already strong.

INet had dozens of online gambling operators as customers, and they in turn had hundreds of thousands of punters.

Handley will soon return to Costa Rica to install the software for one of INet's larger customers.