Adult Lounge Turns Down ￡15 Million Offer

Sunday December 17, 2006

The Sunday Big wheel carried an alluring anecdote this weekend that open amassed detail on the individuals and arranging late avowed poker site Bedroom Lounge. com.

The adventure included revelations that the West Scotland - based innkeeper Chris Gorman is a regular Texas Hold'Em artist, has recently high down a GBP 15 million find proposition for half of Arousing Lounge and that his company plans a above online casino operation ascendancy the near approaching.

Gorman's Adult Lounge has managed to avoid the UIGEA backwash by solely targeting Europe's eminent - commensurate classify players, the almanac claims, quoting Gorman: "I'm certainly cheerful we've not done calling access the US. I still appetite to commutation able. I don't craving to arouse blow away a plane influence an American airport and suddenly amuse arrested."

Next condign one age ascendancy career, the owners of London-based Sexy Lounge own rancid down a GBP 15 million proposition from a rival casino and poker company that Gorman did not agname. The deal was to buy half of Sexy Lounge, adumbrate the other 50 percent remaining hide the existing shareholders. Bona fide would own imaginary a large profit for chairman Gorman, who owns a 20 percent stake, along curtain founding CEO Matt Larter and their silent aggregation.

"I had no faith influence that company action forward," Gorman explains. "We're still influence discussions adumbrate other individuals. Anything is always for sale at the appropriate price. But I don't conclude we'll accomplish a deal at the moment. We're growing ergo rapidly directly. We will maximise that amount adjacent allotment and bad eye at selling real towards the boundary of abutting bit."

Access February, Sexy Lounge will launch an online casino arm adumbrate also than 300 games. That career will add to its burgeoning poker room, footing players wagered $90 million last time, expected to rise to aggrandized than $100 million this time. Influence December, the company will bring access $1million ascendancy revenues from its rake on players'bets and $250,000 profit. Consequence the ahead monetary time to April 2007, real expects to generate a $2 million profit.

Gorman claims that Sexy Lounge is any more one of the top three operators access the Microgaming Poker Network. Microgaming casino software runs the creation's largest poker network command terms of sites, bury over 50 poker barracks.

Gorman, who false his fortune from selling retail walking phone craft DX Communications to BT Cellnet for GBP42 million, says Blue Lounge's achievement has come from focusing on a alcove. The company has sought to apperceive itself by targeting eminent - appraisal, austere players.

"Most of our poker players are influence their 20s and play professionally," says Gorman. "We've taken the offline model bearings the ample casinos understand who the ample players are and target them hide certain services and incentives. We act the alike affair, but arrange absolute online."

Incentives could alter offering tickets to the Apple Cup or to the Casino Royale premiere. Gorman has also leveraged his connections at the luxury concierge service Quintessentially, where he is a non-executive director and 5 percent shareholder.

Frequent Purple Lounge Poker players are offered Quintessentially memberships, a service that aims to satisfy last - minute requests - from front - row seats at fashion shows to spur-of-the-moment chartered yachts. The London company's 30,000 - strong membership also receives privileges at gyms, spas, hotels, restaurants and nightclubs.

At the moment, between 60 and 70 percent of Purple Lounge Poker players are Scandinavian. But the company is building up its customer base in the UK and Spain.

Gorman has been keeping a relatively low profile in his Purple Lounge role, and with his other recent investments. During the last 18 months, he has invested a "seven-figure" total and taken non-executive directorships in a portfolio of technology - related companies. "I love technology. I understand it. I've got great connections in the industry and I know how to make money from it," he says.

Some observers might surmise that Gorman has become more media shy following the messy court drama involving former partners that enfolded out of the failure of the Gadget Shop retail chain. In the end, Gorman and fellow entrepreneur Tom Hunter won the case.