Sportingbet Chairman's Arrest Stuns UK Online Gaming Industry

12 September 2006

Newspaper

Linux Insider
Scotland on Sunday
09/11/06 9:22 AM PT

The New York State Supreme Court released Sportingbet Chairman Peter Dicks on $50,000 Friday. He is required to turn over his passport and stay in New York City under terms of the release. Shares in Sportingbet fell 38.5 percent in London on Monday, having dropped as much as 43 percent in early trading….

New York police pulled him in as he disembarked at John F. Kennedy Airport. As part of an ongoing investigation into Sportingbet, the arrest has sent an intimidating message across the Atlantic to the online gambling industry….

Last night, staff at rival online gambling firm PartyGaming were told travel to the U.S. was a personal decision. Few would blame them if they canceled their visits stateside….

On Thursday, shares were immediately suspended at the company’s request, while other sector stocks plummeted on the news. Analysts who have scrutinized the indictment of Carruthers and seven others on racketeering and other charges have said the U.S. authorities mean business….

Part of the reason is that there is a long history of corruption in sports betting in the U.S., which dates back to the fix of the 1919 baseball World Series. Both the Republicans and Democrats are vying to win votes from the Bible belt electorate ahead of this year’s mid-term elections….

Dicks will now face a hearing on Thursday as to whether he will be extradited from New York, where he was arrested, to Louisiana….

Meanwhile, PartyGaming and others are seeking to diversify into other markets, such as Asia, where gaming is a way of life — while firms, such as Playtech, that supply licensed software to online casino, poker and bingo operators have taken to issuing statements to the market distancing themselves from online gambling….

To read the complete article, go to Linux Insider

Related News

  • 27 May 2006

    PokerShare Gives Away 8000 Gallons of Gas to New Yorkers!

    How cool is this! Friday, May 26th PokerShare.com gave away over 8 thousand gallons of gasoline to hundreds of people in New York! The line to get gas stretched for over 10 blocks, even blocking traffic on the Brooklyn Bridge. PokerShare employees joined the gas station employees at 6 AM at the Westside Highway gas station, where they began pumping full tanks (up to 40 gallons) of free unleaded gasoline per customer, with PokerShare picking up the tab!

    Read full article
  • 08 September 2006

    Sportingbet PLC Chairman To Fight Extradition To Louisiana

    EASYBOURSE Thursday September 7th, 2006 / 5h35 By Chad Bray Of DOW JONES NEWSWIRES NEW YORK -(Dow Jones)- The non-executive chairman of Sportingbet PLC (SBT.LN) will fight extradition to Louisiana on charges of illegal Internet gambling, his lawyer said late Thursday.

    Read full article
  • 09 September 2006

    PETER DICKS, SPORTINGBET CHIEF, RELEASED ON $50,000 BAIL

    BBC NEWS 09/09/06 The chairman of UK-based online gaming firm Sportingbet has been granted a $50,000 bail by a US court. Peter Dicks was held in New York on Thursday under a warrant issued by state authorities in Louisiana accusing him of “gambling by computer”. The court in Queens, New York, also ordered him to surrender his passport. Mr Dicks is to face another hearing on 14 September when the New York court will consider a request by the Louisiana authorities to extradite him.

    Read full article