Friday, October 20, 2006

AUSTRALIAN online gaming company Betcorp has suspended its United States
operations after the enactment there of restrictions that effectively ban
some forms of internet betting. Melbourne-based Betcorp said it had
suspended its US operations after the Unlawful Internet Gambling Enforcement
Act of 2006 was signed into law by US President George Bush. The act makes
it illegal for US banks and credit card companies either to take payments
from or make payments to online gambling sites. Betcorp said it had
"suspended the accounts of United States residents with immediate effect",
in response to the enactment of the new gambling regulations. "The group
continues to trade with residents of 87 other countries in which it has
customers," the company said. The company is also listed on the London Stock
Exchange's small cap AIM exchange, and is set to delist from the Australian
exchange this month in order to concentrate on its British operations.
Betcorp said it was "unable to sell its US operations prior to the act
coming into force", given that both the ASX listing rules and AIM's rules
require that any such transaction be conditional upon shareholder approval.
Last month, Betcorp decided to stop accepting telephone bets from US
customers, citing regulatory uncertainty.