Sportingbet sells US arm for $1

**Steve White** · 10-13-2006 06:29 AM

Taken From BBC.co.uk:

Online gaming firm Sportingbet has sold most of its US business for $1 (53p) hours before a law is passed outlawing internet gambling across the country.

The firm has sold its US sports betting and casino businesses to Jazette Enterprises for the nominal sum.

On Friday, President Bush is due to sign into law an act making it a crime to accept proceeds from online gaming.

Sportingbet has been reviewing its US business since its former chairman Peter Dicks was arrested in September.

'Fantastic business'

Though Mr Dicks has since been released, the arrest was part of a series of moves made by US authorities trying to discourage online gambling operators.

State officials in Louisiana had issued a warrant accusing him of "gambling by computer" but a New York court refused to sanction Mr Dicks' extradition to Louisiana.

"We are saddened to have to dispose of such a fantastic business as a result of political actions in the US Congress," said Andrew McIver, the firm's chief executive.

"The sale, however, prevents significant closure costs which would have been both expensive and time consuming."

Sportingbet said it would now focus on developing its business in Europe and Australia.

It will retain its Paradise Poker site, but will stop accepting US cash later on Friday.

Legal clarity

US lawmakers took the gambling industry by surprise when they agreed sweeping measures criminalising the transfer and handling of proceeds from online gambling earlier this month.

Gambling on sports events was already illegal in most US jurisdictions.

But the scope of existing law governing the gambling industry was considered to be unclear and gaming firms had promoted their businesses there on the expectation that their operations would be left alone.

US lawmakers are concerned that internet gambling has been fuelling social problems, such as debt and addiction, and could act as a magnet for criminal activity.

Bill Frist, a senior Republican senator, described internet gambling as a "shadow industry" which needed to be dealt with.

Several gaming firms, including Partygaming and 888 Holdings, have already said they will stop accepting bets from US residents once the act becomes law.

Betting and gaming firm 32Red said it would stop US transactions on its poker and casino sites on Friday.

**es80** · 10-17-2006 08:20 AM

Online Gambling Industry got hit real big because of this legal issue. It was one of the biggest industry online.. so there were lotta talk around this issue.

Will this stop people from gambling online?