Leisure & Gaming Going Private

11 October 2006

REUTERS

LONDON, Oct 11 (Reuters) – The U.S.-focused gambling operations of Britain’s Leisure & Gaming (LNG.L: Quote, Profile, Research) are likely to be taken private and continue operating after online gambling is banned there, a source close to the company said on Wednesday.

Leisure & Gaming said on Tuesday it would block U.S. gamblers from its sites, and was in preliminary talks to sell its U.S. operations.

“All the American-facing business is likely to carry on under private ownership, and the impact on customers should be minimal,” said the source. “The management is expected to be unchanged.”

Gaming companies were left in shock when the U.S. Congress unexpectedly passed a bill last week making it illegal to accept bets over the Internet, or for credit card companies to process payments to online gaming firms.

The measure has been passed to President George W. Bush to sign into law, which gaming firms see as inevitable.

Leisure & Gaming’s U.S.-focused businesses are English Harbour, Nine.com, and VIP.

The source added that online gambling had become impossible for publicly listed companies like Leisure & Gaming, but denied reports the company faced problems with its bank loans.

“Leisure & Gaming will survive — if the worst came to the worst they could afford to pay the banks back in full,” the source said.

THIS ARTICLE CAN BE FOUND AT REUTERS

Related News

  • 14 May 2010

    Canadian Man Pleads Guilty in U.S. Online Gambling Charge

    Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.

    Read full article
  • 02 June 2010

    France to Award 30 Licenses for Online Gambling

    Today the government of France approved a new online gambling bill. The bill passed the French parliament by a narrow 299-233 vote. The French will grant only 30 licenses to operate online casinos and poker rooms within its borders. Though it is now official and France says that licenses will be granted in time for the 2010 World Cup, not everyone is excited about the French market.

    Read full article
  • 09 June 2010

    France Issues 11 Licenses For Online Gambling

    France acknowledged that 11 companies have been granted license and have been registered to conduct online sports and horse race betting as well as online poker within France. According to Arjel president Jean-Francois Vilotte, the regulator of gaming in France, “There were 35 requests for licenses and we have retained 17 at this stage. None have been formally rejected.

    Read full article