Sunday, October 15, 2006

The beleaguered online gambling industry is bracing itself for a wave of
company collapses and redundancies, after World Gaming collapsed into
administration today. It is the first company to crash, following the shock
decision of the US senate to outlaw online gaming last month. President
George Bush is expected to sign the legislation into force later today. All
the online gambling companies are racing to close or sell their US
operations by the time he signs. 888 emerged today as the latest to be
looking for a suitor. Asked if the company would go private, chief executive
John Anderson told Dow Jones: "I think that's got to be looked at." He said
all options are being considered, including opportunities to expand the
business in Europe. Yesterday, Sportingbet sold its US sports betting and
casino business for a nominal $1. The secured creditors of World Gaming,
understood to be Barclays Bank, pulled the plug on World Gaming earlier this
morning and called in administrators UHY Hacker Young. The administrator has
issued a statement saying: "The secured creditor has subsequently concluded
that it is reasonably likely that administration will achieve a better
result for the Company's creditors than would be likely if the Company were
to be wound up." All the directors have resigned. The company has operations
in Antiqua, Vancouver, London but it is not clear how many employees will
lose their jobs. Gibraltar is likely to be particularly hard hit by the US
crackdown. One in ten adults of the island works for the online gambling and
betting industry.