Tel Aviv-based PrincessNet online gambling operator is raising $7.5 million from the U.S. fund MET in exchange for 20 percent stake in PrincessNet.

Israeli online gambling operator valued at $37.5 million

Tel Aviv-based PrincessNet online gambling operator is raising $7.5 million from the U.S. fund MET in exchange for 20 percent stake in PrincessNet, www.gamblingmagazine.com reported.

The deal will bring PrincessNet"s market value to $37.5 million. Founded in 1997 by Adi Tarkay, PrincessNet operates a network of online casinos.

To date, a total of $1.7 million have been invested in PrincessNet by Reuven Gavrieli (a co-owner of 22 online casinos, mostly in Turkey) and by Emerald Financial Corporation (Nasdaq symbol EMLD) which is controlled by Motti Menashe and Eli Abramovitch.

PrincessNet sells a separate concession for each language for $500,000 plus 29 percent of net revenues (all revenues minus all wins and minus clearing expenses). In exchange, the operator will receive hardware, operation, support, language adjustment, and switching support.

According to PrincessNet general manager Trakai, the company plans to launch an advertising campaign on major portals. The company is also negotiating with Internet portals in Israel and abroad.

PrincessNet has a support company in Cyprus, and its parent company is based in the Dominicans (both countries permit gambling). The company has an agreement with Monte Carlo based clearing company Mona-Call, which has a license for clearing services for online gambling, and is regulated by the Monaco government.