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Theres just way too much money at stake for these books. I think alot more books will exploit loopholes in this new law like sportingbet is trying to do.
Heres the article:
More online gaming casualties
By Caroline Muspratt
(Filed: 09/10/2006)
# Sportingbet looks for loopholes to stay in the US
World Gaming became the first casualty of changes to US gambling laws when it suspended its shares this morning.
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The online gambling group said it was unclear whether it would be able to continue trading, as the fallout stretched across the sector. Empire Online said it would invest in safer lines of business and PartyGaming was officially earmarked to exit the FTSE 100 index.
Empire shares were suspended at 8½p, having plunged from 60½p since anti-gaming laws were passed in the US at the end of last month.
World Gaming makes almost all of its money from US gamblers, where the activity is in the process of being outlawed.
The company said it has held talks with key parties and taken legal advice, adding that the shares were being suspended "due to a fundamental uncertainty over its ability to continue trading".
Seperatley, sources close to Empire Online said the group was looking outside the internet gambling sector for ways to invest its $250m (£130m) cash pile. Empire shares were up 0.5pc at 50p.
Empire gained the money in February by selling its Empire Poker division to PartyGaming to end a legal dispute, and much of it has been earmarked for acquisitions.
Empire added that its chairman, Lord Steinberg, would step down from the end of October to be replaced by Richard Rosenberg, a senior independent non-executive director.
The company gave no reason for Steinberg's departure, but it follows legal action against numerous executives in the online gaming industry.
David Carruthers, chief executive of BETonSPORTS, was arrested in July while travelling through Texas. Sportingbet then banned staff from travelling to the US after chairman Peter Dicks was arrested at New York's JFK Airport last month on charges in Louisiana of "gambling by computer".
Last month, World Gaming chairman James Grossman and non-executive director Clare Roberts resigned.
A source close to the UK company said they had decided to quit because the US crackdown – which has already led to the arrests of two British executives – "precludes them from going about their normal business".
Both directors are high-ranking solicitors with significant business dealings in America.
The compilers of the FTSE said they would drop sector leader PartyGaming from their list of 100 leading shares after it lost 63pc of its value last week to be worth about £1.7bn.
At the end of September, the US House of Representatives and the Senate unexpectedly approved a bill that would make it illegal for banks and credit card companies to make payments to online gaming sites.
The news triggered a share price crash that has wiped nearly $7bn off company values.Comment -
This could be another way for Sportingbet people to get their assets on one sheet of paper. All of the formerly WG licensed books operate out of the same CR facility with the exception of BetOnUSA.
A short time after 2nd biggest licensee, Cybersportsbook group left for IQL, Sportingbet mgt, or former mgt, took over World Gaming. Later in 2004, they put some "joint venture agreement" together so Sportingbet wouldn't have to pay a % from one hand to the other. Sportingbet earned a % of World Gaming Licensees revenue even if it was not under Sportingbet. It remained a separate company. Sportingbet then continued to put their big clients on their books like MySportsbook in 2005.
On paper, Real Entertainment Inc. was one of the last individually listed clients not helping the public companies. World Gaming Plc "purchased" it. Its Antigua license is listed as Interactive System Inc. The money goes to Sportingbet Plc's subsidiary Internet Opportunity Entertainment Ltd (the subsidiary company that owned/owns half of World Gaming software division).Comment -
I wonder when a major book that caters to usa players is going to pull the plug on the players. It is going to happen eventually but I do not know which ones. I think book owners waiting for Pres to sign bill.
Right now everyone talks a good game that they are not going anywhere, easy to saw when its not a law yet. I think the pressure will be too great and many will pay the usa players and move on to a smaller credit type profitbale business.Comment -
Are you saying Bet365 is not a major book? Or do you mean "pull the plug" as in run off with post up funds?Originally posted by jjgold
Revere14Comment -
Bet365 is a major book but the Euro books do not count in this example. I am referring to the Cris' and Caribs of the world. I do not know which ones but some will close and just refund the players and go to a credit operation. I think some owners will get scared of any type of FBI investigation if they feel the USA is going to really go after this. Also if it really becomes hard to send funds they just might close up also as operational costs might be too much if they do not have the players betting.Comment -
As far as I'm concern Bet $3.65 is a joke. In my book they are a C book at best. They are known for cutting limits, bad CS, and afraid of winners.Originally posted by Revere14Comment -
bet $3.65 is definitely a joke hanco...Comment
