Online Gaming Executive Detained in the USA

David Carruthers, the Chief Executive of BETonSPORTS plc, a London Stock Exchange quoted online gaming company, has been detained by US Federal authorities while changing planes travelling from the UK to Costa Rica, one of the locations from where the group services its customers.

The Board of BETonSPORTS plc say they are "…currently seeking clarification as to the basis of the detention and a further announcement will be made when appropriate. The business continues to trade normally. In particular, the Antigua-licenced
gaming activities serviced in Costa Rica and Kuala Lumpur are operating as
usual."

While nothing may come of it, all eyes in the online gaming industry will be focussed on whether there is an underlying issue given the currently high-profile negative US political stance against online gaming. The news certainly spooked stock market listed online gaming shares, many of which dropped 10% or more including Party Gaming plc and 888 Holdings plc.

BETonSPORTS plc is one of the world's largest US and Asia-facing, on-line gaming companies offering sportsbook, casino and poker. The Group gained its first internet sportsbook operating license in Antigua in 1997. At the peak of high season in the financial year ended 5 February 2006, it employed over 1,600 employees in Antigua, Costa Rica, Malaysia and the United Kingdom. BETonSPORTS.com has been ranked the number one sportsbook by a number of leading industry organisations, including the Offshore Gaming Association (OSGA), and the International Sports Book Council (ISBC). Over 40 million gaming bets were placed with the BETonSPORTS group in the financial year ended 5 February 2006. This equates to more than 75 bets accepted per minute, and approximately 90% of all the bets received were taken over the internet.

At the BETonSPORTS plc Annual General Meeting late last week, Carruthers stated
that current trading was in line with the positive outlook expressed on 18th May when financial results were released. He said that the integration of recent acquisitions, Hooball.com and 777ball.com, into the Easybets operation was on track; saying that:

"…the infrastructure performed faultlessly during the weeks of hectic World Cup activity and broadened payment processing channels proved their worth. The World Cup period has delivered in excess of ten thousand new real money Asian customer sign-ups for Easybets, Hooball and 777ball. Robust cross selling from sportsbooks to casino has produced a particularly positive performance in the Asian casino offerings."

Carruthers also said: "At acquisition we regarded the timing as propitious. Hooball.com and 777ball.com have high soccer profiles and I am in no doubt that through these brands the World Cup has given instant impetus to the business. We have attracted impressive sign-ups and our focus is now on retention and maintaining momentum. To date, the attention we have paid to cross-selling mechanisms and enhancing the entertainment experience has produced encouraging results."

Carruthers went on to say about the recent political moves in the US:

"In the US, further to the passing of Bill HR44111 in the House of Representatives
(which was widely predicted), we continue to believe that the likelihood of the
bill passing the Senate is remote."

Here at Sportsbetting Pokernews, we look forward to any further announcement from BETonSPORTS plc about Mr Carruthers' detention in the US.

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