The casino gaming market has experienced rapid growth over the last two decades as gaming has increased in popularity and appeal in the United States and internationally. According to the American Gaming Association, United States total gaming revenue, the amount wagered minus the winnings returned to players, grew to nearly $73 billion in 2003, representing a 7.7% compounded annual growth rate since 1993. Commercial casinos generated approximately $29 billion in annual revenue in 2004, a more than 7% increase over 2003 results.

During the last 15 years, casino operators in Las Vegas and other markets have responded to increased competition by expanding the floor space devoted to their patron’s non-gaming pursuits. This trend has continued, for example, with the recent opening of the Wynn Las Vegas that includes 76,000 square feet of retail space with 22 food and beverage outlets and a car dealership.

Bingo is one of the oldest and most popular forms of wagering and entertainment. According to the 2005 Casino and Gaming Market Research Handbook published by Terri C. Walker Consulting, Inc., a market research firm, more than 300 million people worldwide and more than more than 70 million people in the United States play bingo on a regular basis.

Because bingo prize amounts are generally determined before the game begins, regardless of the number of paper and electronic bingo cards sold to players, bingo operators’ profits increase from the sale of additional bingo cards. As a result, casinos and bingo halls are increasingly attracted to electronic bingo platforms that automatically match the bingo numbers drawn by the bingo caller to the bingo numbers on players’ electronic bingo cards, since the electronic bingo platforms enable bingo players to play more bingo cards in each bingo game.

The Company has developed several proprietary sets of electronic bingo cards for generic and custom applications, such as bonanza bingo games. No card in the Company’s sets duplicates any card in any commercial set of paper bingo cards known to the Company. In addition, the Company’s wireless and stationary player terminals are capable of storing in electronic format complete facsimiles of third-party commercial sets of paper bingo cards.

The Company’s central games file servers are internally developed, PC-compatible computers equipped with non-modifiable and verifiable memory circuitry that complies with Nevada’s gaming device standards. The Company’s central games file servers run on the reliable Linux operating system and facilitate the concurrent playing of multiple types of bingo games along with traditional casino games. The Company’s internally developed modular gaming software allows to rapidly customizing its gaming packages to meet the regulatory requirements of specific jurisdictions.

The mobile casino gaming platform uses the Company’s internally developed, fast-response, secure, bi-directional spread-spectrum RF communication hardware and software for wireless communications. The Company’s communication hardware and software offers reliable and secure data delivery to and from its wireless player terminals, even in the noisy environments characteristic of modern casinos that are saturated with cellular telephones and security radio telephones.

The Company has internally developed all critical aspects of its gaming platform and has outsourced only the volume manufacturing of parts and subassemblies. The Company’s designs all of its software, including all of source code and all of user’s interfaces and graphic art for the Company’s player terminals. The Company also designs all of its hardware, including both electronic and mechanical components, all printed circuit board diagrams and layouts, and all 3D and 2D mechanical drawings for all its plastic and metal parts.

Cost of revenue was $1.2 million, in the six months ended June 30, 2005, compared to $1.1 million, in the six months ended June 30, 2004, an increase of $96.4 million, or 8.6%.

General and administrative expenses were $1.8 million, or 25.1% of revenue, in the six months ended June 30, 2005, compared to $2.3 million, or 29.4% of revenue, in the six months ended June 30, 2004, a decrease of $437.7 million, or 18.9%.

Sales and marketing expenses were $2.1 million, or 29.0% of revenue, in the six months ended June 30, 2005, compared to $1.9 million, or 25.2% of revenue, in the six months ended June 30, 2004, an increase of $191.1 million, or 9.7%.

Research and development expenses were $459.9 million, or 6.2% of revenue, in the six months ended June 30, 2005, compared to $155.7 million, or 2.0% of revenue, in the six months ended June 30, 2004, an increase of $304.1 million, or 195.3%.