gambling to airlines, has resumed trading on the Nasdaq exchange after the British Columbia Securities Commission (BCSC) lifted its month-long, cease-trading order.

Sky Games said Nasdaq informed it of its intention to resume trading in the company's common stock (Nasdaq Small Cap Market) immediately.

The company, which only trades on Nasdaq, emphasised that it has been in full compliance at all times with the reporting requirements of the Securities Exchange Commission and the listing requirements of Nasdaq.

But to prevent a recurrence of the situation that caused a trading suspension, the company will initiate the necessary filings to terminate the requirement to be a reporting issuer with the BCSC.

Sky Games advised the investment community yesterday that it is at present in advanced negotiations with respect to its first contract for its in-flight gaming system.

A company statement said, "It is impossible to predict definitively the timing of any announcement in this regard, but investors and other interested parties should be aware that it may be in the near term.'' Sky Games has developed sophisticated remote-control gaming entertainment system software, which is being marketed through Interactive Entertainment Ltd. (IEL).

IEL will provide airlines and their long-haul passengers with a unique gaming entertainment option through the carrier's in-flight video entertainment systems.

The operation of the gaming tables, consisting of small electronic boards that could be fitted underneath airline food trays, would only occur during an airline's flight over international air space.

The Sky Games system includes six popular casino games, including draw poker, blackjack, bingo and Keno, in an electronic package that weighs about 14 ounces. Wins would be paid out on the plane via an American Express money order, negotiable worldwide.

Sky Games a month ago explained that their trading was suspended over a technical compliance matter related to the company's prior securities registration with the British Columbia Securities Commission (BCSC).

Incorporated in Bermuda in February, the company had delisted from the Vancouver Stock Exchange at the end of December. But it was still deemed to be a reporting issuer under the rules of the BCSC, requiring the filing of its annual financial statements with the BCSC within four months of the end of the fiscal year.

That deadline was June 30, and in the absence of such a filing, the BCSC issued a trading halt, even though the company's stock does not trade on any securities market in British Columbia. Nasdaq informed Sky Games of its policy to impose its own trading halt under such circumstances.