Saturday, October 14, 2006

With the US government cracking down on online gambling, what are the odds
for the industry in America? It's an impressive list: the September arrest
of Peter Dicks, non-executive chairman of Sportingbet; the July arrest of
David Carruthers, chief executive of BetonSports; and legislation passed by
the US House of Representatives in July to prohibit banks and credit card
companies from processing payments to offshore internet gambling sites.
These are, some say, a strong series of opening punches by the US government
in a fight against online gambling. But industry analysts, including
Christiansen Capital Advisors, a market research firm that tracks online
gambling trends, believe it will prove only a glancing blow. The charges
against Carruthers have at least temporarily shut down BetonSports' business
with US customers and sent shockwaves through the rest of the industry.
Some BetonSports rivals, however, insist it is little more than an isolated
case against a company that flaunted online sports betting and took bets
over the telephone, both clearly prohibited under US law.