10.12.2006 (04:47 PM CST)
sells Sportsbook.com (SBR rating D+) and US-facing business to "existing management team"
Statement: Sportingbet announces that it has sold, on 12 October 2006, its US-facing sports betting and casino business (the “US Operations”) to Jazette Enterprises Limited (“JEL”) (the “Disposal”). Sportingbet received cash consideration of US$1 for the shares and related assets of the US Operations, and has discharged excess liabilities amounting to approximately US$13.2 million. Had the business been closed, the Board estimated that the cost of severance and closure would have amounted to approximately US$14.0 million – a total saving of circa US$27.2 million. Full Statement
The press release suggests that Wallstreet, Aces, and SportingbetUSA (SBR rating D+) will move US players under a different brand, likely Sportsbook.com. Sportingbet Plc has retained ownership of these highly marketable website domains. Paradise Poker will relinquish its share of the US poker market. The poker giant will also be retained by Sportingbet Plc and cease taking deposits from US players at 11:00 a.m tomorrow.
SBR is currently investigating claims that the group has canceled winning future wagers of players who reside in US states that have specific laws against gambling.