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Notes to the Financial Statements
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46 24. RELATED PARTIES 24.1 Identity of related parties The Group has a related party relationship with its subsidiaries (see note 25) and with its directors and executive officers. 24.2 Transactions with key management personnel The Group’s key management personnel are considered to be the directors as shown in note 8.1.2. Directors of the Company and their immediate relatives control nil% of the voting shares of the Company. G Cassels, who left the board on 5 December 2008, received part of his remuneration through a UK Service company, LNC Associates Limited, beneficially controlled by himself and his immediate family. There remains a contract with LNC Associates Limited through which other non-family personnel are employed, and who carry out accounting services on an arms length basis. The Group incurred expenses of c95k (2007: c159k) due to LNC Associates Limited during the year. 25. GROUP ENTITIES Significant subsidiaries Country of incorporation Ownership interest 31 Dec 31 Dec 2008 2007 Gaming VC (Cyprus) Limited Cyprus 100% 100% Gaming VC (Jersey) Limited Jersey 100% 100% GVC Corporation B.V.* Netherland Antilles 100% 100% GVC Corporation II B.V. Netherland Antilles 100% 100% Gaming VC Corporation Limited Malta 100% 100% Gaming VC Corporation S.p.A. Italy 100% 100% *GVC Corporation B.V. also has a registered branch in Israel. 26. CONTINGENT LIABILTIES The group, through its trading websites, offers progressive jackpots on slot machines. Betaland progressive jackpots The progressive jackpot fund in which the Betaland site participates is part of a network scheme that is to say it is built up based on the gaming activity of every player from every operator in the network at the end of each month, each operator pays into the central fund the amount added into it as calculated from the play of their own customers and receives back from the fund the value of jackpots won by their own customers (less a deduction to re-seed the jackpot to its starting value). If GVC customers never win such a jackpot, GVC still has to pay into the fund, but it has the peace of mind that if one of their customers does win a substantial jackpot then GVC does not have to carry that cost itself it is basically an insurance policy, but one which provides a strong revenue-generating tool in the jackpot games themselves. Casino Club progressive jackpots Unlike Betaland, CasinoClub does not participate in the network progressive jackpot scheme instead it offers an equivalent system in which only its own customers participate. This means that CasinoClub make no contributions to the central fund as it builds up (since they are the only operator in the scheme, this would serve no purpose), and should a CasinoClub customer win the progressive jackpot there is no central fund to cover the payout so the cost of this would be taken directly to the Income