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Press release from CNW Group

Amaya Gaming Group announces its 2011 first quarter financial results

Thursday, June 30, 2011

Amaya Gaming Group announces its 2011 first quarter financial results09:00 EDT Thursday, June 30, 2011Successful deployment of SMS lottery technology to generate growing recurring revenuesMONTREAL, June 30, 2011 /CNW Telbec/ - Amaya Gaming Group Inc. (TSXV: AYA), an entertainment solutions provider for the regulated gaming industry announced today its 2011 first quarter financial results.FINANCIAL HIGHLIGHTS        Q1 2011 Q1 2010  $ $Revenues 1,138,074 1,480,291Net earnings (loss) and comprehensive income (loss) (1,821,662) 449,063Basic and diluted earnings ( loss) per share (0.05) 0.02OTHER RECENT HIGHLIGHTSOn January 24, the Corporation obtained a second public lottery permit from the Government of Kenya to operate and promote a public lottery in the Republic of Kenya. Under the terms of this second permit granted by the Government of Kenya, Amaya shall operate a 6/48 lotto game and instant scratch card lotteries.On January 26, the Corporation added Mexico, Central America, the Caribbean and various South American countries as new territories covered under the existing licensing agreement between Amaya and the Société des Bingos du Québec ("SBQ") for the distribution of Bingo Mundo a proprietary bingo lottery software.On February 17, the Corporation launched its Short Message Service (SMS) Lottery ("SMS Lotto") in the Republic of Kenya which has an estimated 20 million mobile phone users.On February 24, the Corporation secured a license to operate online gaming in the Dominican Republic.On March 1, the Corporation was selected by the Betting Control and Licensing Board of Kenya to operate online gaming. This selection has been granted on an exclusive basis to evaluate the merits, potential, and prevalence of online gaming, as well as to ensure that those who are under-aged cannot have access to online gaming in the Republic of Kenya.Commenting on the quarterly results, Mr. David Baazov, President and Chief Executive Officer of Amaya Gaming Group said "the successful launch of our SMS Lottery in the Republic of Kenya demonstrates our capacity to execute on our strategic corporate initiatives by effectively penetrating and developing new markets. Amaya's government solution offering was further strengthened by the grant of a Nation-Wide Lottery Permit in Kenya and a license to operate online gaming in the Dominican Republic. We believe the continued investment in expanding and implementing our solutions will enable the company to grow revenue and increase earnings in 2011."FINANCIAL RESULTSAmaya posted revenues of $1.14 million for the first quarter of 2011, a 23% decrease compared to $1.48 million in the first quarter of 2010. The decrease reflects the Corporation's efforts to gain traction of its solutions aimed at the hospitality and government sectors.The net loss for the first quarter of 2011 totaled $1,821,662, or $0.05 per share, compared to net earnings of $449,063, or net earnings of $0.02 per share for the same 2010 period. The net loss for the first quarter of 2011 is primarily attributable to increases in sales and marketing and administrative expenses incurred in connection with the SMS Lottery operation in the Republic of Kenya.Amaya's gross profit was 99% for the three-month period ending March 31, 2011 and 83% for the three-month period ending March 31, 2010. Gross profit levels achieved in the first quarter of 2011 were primarily driven by software licensing agreements.Sales and marketing expenses were $1.92 million for the first quarter of 2011, compared to $0.21 million for the same 2010 period while general and administrative expenses were $1.42 million for the first quarter of 2011, compared to $0.50 million for the same 2010 period. The year-over-year increases are mainly attributable to advertising, marketing, and prize pool funding for the SMS Lottery operation in the Republic of Kenya as well as a growing employee base and a fully staffed operation in the Republic of Kenya.2011 FIRST QUARTER FINANCIAL STATEMENTS AND MANAGEMENT'S DISCUSSION AND ANALYSISThe complete financial statements, notes to financial statements and Management's Discussion and Analysis for the three-month period ending March 31, 2011, are available on the SEDAR Website at www.sedar.comABOUT AMAYA GAMING GROUP INC.Amaya is engaged in the design, development, manufacturing, distribution and sale of technology based gaming solutions for the regulated gaming industry worldwide. For more information please visit www.amayagaming.comDISCLAIMER IN REGARDS TO FORWARD-LOOKING STATEMENTSCertain statements included herein, including those that express management's expectations or estimates of our future performance constitute "forward-looking statements" within the meaning of applicable securities laws. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Investors are cautioned not to put undue reliance on forward looking statements. Except as required by law, the Corporation does not intend, and undertakes no obligation, to update any forward-looking statements to reflect, in particular, new information or future events."Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."For further information: please contact: Mr. David Baazov  President and Chief Executive Officer  Amaya Gaming Group Inc.  North America: 1-866-744-3122  Worldwide: 1-514-744-3122  http://www.amayagaming.com  Pierre-Paul Côté Director of Communications Amaya Gaming Group Inc. North America: 1-866-744-3122 Worldwide: 1-514-744-3122 http://www.amayagaming.com