Seaniemac management reacts to adverse media reportage

Shane O’Driscoll, CEO of online gambling operator Seaniemac, has reacted to reports in the Irish media and elsewhere earlier this month which quoted a company statement that if it could not raise more investment capital it may have to cease operating, and has accumulated losses totalling $10 million (see previous report).

The subject of excessive debt (at that point quoted as $6 million) was addressed in a stakeholder Q&A by O’Driscoll in April this year in which he advised stakeholders:

“A substantially large portion of our debt and all of our residual preferred stock obligations predate the merger with SeanieMac International to the days when the public company was Compliance Systems. We believe many of these obligations can and will be settled or removed from the balance sheet in 2016.”

O’Driscoll revisited this issue in a statement this week reassuring investors that the company remains viable and expects great things from its change of software platform to the Optima system mid-September.

Accusing the media of overstating Seaniemac losses, O’Driscoll commented that reporters had incorrectly included $7 million in losses incurred by the US public company before the SeanieMac acquisition, and that the company has invested close to $3 million in brand building and day-to-day operating expenses, illustrating its commitment to the business.

O’Driscoll additionally claimed that the acquisition of Apollo Bet earlier this year has delivered “significant growth in turnover.”

Seaniemac has been receiving ongoing financing over the past three years, and has planned and transparent credit facilities, O’Driscoll asserted. Investment had been received in July and August from existing investors.

“While it is completely true that we rely on outside financing to grow and build our brand the suggestion that we did not have a responsible financing plan in place was not balanced,” O’Driscoll said.

“Like any start-up we have depended on investment to launch our business and will rely on continued investment to grow.”