Sportingbet Reports Huge Online Gambling Losses - Castigates UK

30 November 2006


Sportingbet has reported quarterly losses of £241.4m ($470.6m), after selling its US business for £1.

The online gambling firm took a charge of £252m on exiting the US in October, shortly before new laws outlawing internet gaming came into force there.

But it saw gross profit from its other gambling operations rise 48% to £31.7m, in the three months to 31 October.

Sportingbet slammed the UK government for its “lack of support” for the online gaming industry.

It accused Britain of doing little to support the industry ahead of the US legislation, and said it had made “little real progress” in defining a “regulatory and fiscal framework” that would encourage online gaming firms to base themselves in the UK.

Sportingbet said it was looking forward to a “harmonisation” of gaming rules across the European Union.

The exceptional charge taken by Sportingbet included a £132.7m write-down of investments, a £106.3m “loss on disposal of investment” and a restructuring charge of £13.4m.

It said the sale of its US operation had enabled it to transfer over 450 employees, without incurring severance and closure costs.


Related News

  • 10 September 2006

    Peter Dicks’s US Arrest Causing Panic at Online Gaming Firms

    TIMES ONLINE The Sunday Times – Business September 10, 2006 Focus: Busted! Peter Dicks’s US arrest is causing panic at online gaming firms, write Dominic Rushe in New York and Louise Armitstead When the New York Giants take on the Indianapolis Colts today, at least $10 of dodgy money will be riding on the game. The bet was made with the London-listed gaming firm by Dominic Rushe, our US-based reporter, using his American bank account.

    Read full article
  • 28 September 2006


    TAX-NEWS.COM by Amanda Banks,, London 28 September 2006 America’s hard-line stance on the issue of internet gambling is likely to be at the top of the agenda during the visit by a delegation from the government of Antigua and Barbuda to Washington this week.

    Read full article
  • 02 October 2006

    Share Prices Plummet Following US Senate’s Move

    iGAMING 02-10-06 Shares in online gaming firms have dived this morning on the London Stock Exchange, as the industry grapples with the news that the US Senate has passed a bill outlawing internet gambling. Party Gaming has seen a massive 60% drop in prices, while 888 has seen its stock fall by 45%. This has caused the latter to suspend all US business for the foreseeable future and issue a statement saying that this and next year’s figures will be severely affected.

    Read full article