Source: The Star Online
PETALING JAYA: Magnum Corp Sdn Bhd’s recently obtained approval for a new 4-digit (4D) game containing a jackpot element would benefit the numbers forecast operations (NFO) industry as it will reduce the market share of illegal operators.
Multi-Purpose Holdings Bhd (MPHB), which has a 51%-stake in the company, said in a filing to Bursa Malaysia last Friday that the game was scheduled for an end-2009 launch.
OSK Research Sdn Bhd analyst Keith Wee said in a report Tuesday that the Government’s approval of the new game was seen as a move to reduce the market share of illegal 4D game operators, which was estimated to be one to one-and-a-half times larger than the legal NFO market.
He said given the popularity of 4D games in the illegal NFO market, this latest move was a signal that the Government remained serious in reducing the market share of illegal number operators since increasing taxes would only provide opportunities for such operators to gain market share.
“Gaming and corporate taxes are estimated to amount to more than RM1.5 billion per annum,” Wee added.
He said over the longer term, the move would enhance the legal NFO market and provide a level playing field for the three listed NFO firms - Berjaya Sports Toto, MPHB and Tanjong plc.
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