8/11/2006 09:09 AM
betonsports blaming processors for inability to pay.
The manner in which BetOnSports handled the US District Court indictment has been scrutinized by everyone familiar with the situation. Now that the sportsbook has announced it will close and does not have all player funds, the finger pointing has ensued.

Recent reports suggested that BOS was unable to pay players because funds were inaccessible. An Associated Press news release published yesterday on Yahoo News stated "...because of the judge’s order on July 17, some payment processors, or e-wallets as they’re known, have stopped doing business with BetOnSports." AP News interviewed an unnamed BOS executive who stated, "BetOnSports has no way to transfer the bulk of the pending wagers or deposits to gamblers."

Today’s shareholder statement infers that the book’s ability to pay players depends on future earnings and "the Company’s ability to persuade banks and cash processors to release its funds." View full shareholders statement.

Neteller tells SBR that was not the case with its BOS merchant service. Once a sportsbook chooses to cease operating, Neteller’s policy is to freeze the merchant account. BetOnSports made its intention to suspend operating clear when it released a statement shortly after the indictment was unsealed.

Sportsbook operators and industry analysts tell SBR that BOS overreacted to the affect the indictment would have on the company’s public stock value. BetOnSports Plc is believed to have ceased operating in order to freeze share prices. This left financial processors with no choice but to follow with a suspension on merchant transfers.

Kevin

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