Friday, November 17, 2006

The Unlawful Internet Gambling Enforcement Act of 2006 won't stop online
gambling but it will cause consolidation in the industry and a further
example of this was announced today as Bodog is now the proud new owner of
Betcorp's operating subsidiaries. Bodog agreed to buy out Betcorp for a
reported $9 million. Betcorp operated the highly successful online
sportsbook BetWWTS.com as well as the lesser-known Oasis sportsbook. In
addition Betcorp operated BetHoldem Poker, an online poker room, and three
online casinos, most notably Thunderbolt Casino. The deal was finalized
earlier today when Betcorp's shareholders agreed to sell. It must come as
small consolation to them as the company was decimated by the new internet
gambling law in the United States. The valuation of Betcorp is a fraction of
what the company was worth a few months ago. 85% of the company's revenue
was generated by US gamblers and following this new online gambling bill
they decided to ban Americans from betting on their websites. Bodog, which
is privately held and does not have to answer to shareholders, has no such
problems and scooped up these various online gambling operations for an
absolute song. If you hold a BetWWTS account or an account at any of the
other operations previously owned by Betcorp then you now have a Bodog
account as they have migrated all the old accounts over.

Bodog is owned by the maverick billionaire Calvin Ayre who appears unlikely
to back down to the US government as he continues to build his gambling
empire, safe (for now) in his mansion in Costa Rica.