BetWWTS.com Owner Warns of "Adverse Impact" of US Betting Law

Betcorp, the Antiguan-based owner of the large sportsbetting sites, BetWWTS.com and Oasis, has today announced that, if the recently approved "Unlawful Internet Gambling Enforcement Act of 2006" ("the Act") is signed into law in the USA as expected, then this will have a significant effect on the company's fortunes.

The company says in an official statement to the London Stock Exchange that:

"The Board has concluded that, if the Act is signed into law by the US President as presently drafted, the Group will no longer be able to accept funds transfers from customers resident in the United States. Given that a substantial proportion of the Group's customers are located in the United States, this will have a very material adverse impact on the future prospects of the Group.

"The Board is exploring various possible courses of action in order to preserve shareholder value in the event that the Act becomes law.

"A further announcement will be made in due course."

Betcorp, which also runs online casino (BetCasino, Lucky Lady Casino and Thunderbolt Casino) and poker room (BetHoldem Poker) operations, had already said, two months ago, that it was intending to withdraw from US-facing telephone sports betting in the light of the arrest saga involving a rival company, BetOnSports plc.

However, the latest development attacks the rest of the online businesses so far as the US customer base of Betcorp is concerned. Having paid $10,000,000 to acquire the Oasis business only in July, this has been a forgettable year for the group which only floated on the Stock Market a little over six months ago. Then the share price in London reached over £2.50. After today's announcement, at the time of writing, the price stands at little more than 10p, approximately 96% off its high price and a disaster for investors. More alienated opinions are surely heading in Mr Bush's direction!

For all the business problems, the sportsbetting sites themselves continue to provide a wide range of sports for everyone outside of the USA to take advantage of. Sites will continue to offer worthwhile incentives, perhaps even more so now, to encourage players to open new accounts. BetWWTS.com for example currently offers a 15% new deposit bonus up to $500.

Ed note: You can find the best American sports markets on BetWWTS.com. Sign up for a bonus worth up to $500.

• 
• 
• Email to a friend
• Print