Penthouse plans Internet casino

Penthouse publisher Bob Guccione and ex-Players International Inc. boss Ed Fishman are teaming up to create an Internet gambling site blending sports wagering with the magazine's sexually oriented content.

Fishman has applied for an Australian license for the site, which will be called penthousecasino.com. Australia has established regulatory guidelines for legal Web gambling sites, though on-line casino gambling is technically illegal in the United States.

Guccione said he will launch a "vigorous marketing campaign for the site, which is geared to the estimated 25 million people who currently gamble on-line, a number expected to grow to 300 million by 2005."

A recent report by Bear Stearns & Co. estimated 650 licensed and unlicensed on-line casino and sports-book websites are operating today. The report also estimated some of the 145 million adults worldwide who use the Internet wagered $1.2 billion -- including the purchase of lottery tickets -- in 1999.

Gaming & Entertainment Technology Group of Australia is working with the new site on programming and encryption that theoretically will stop U.S. citizens from placing bets on the site. Americans will be able to play "for fun and win prizes," Fishman said.

"When a gambler wants to take a break from gaming, the site will be fully integrated with the Penthouse website, where bettors can chat with Penthouse Pets, visit the photo library ... and seek advice on matters ranging from wagering to sex," Guccione said.

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