Fighting Talk From New Sportingbet CEO

Published: Thursday, September 21, 2006 Online-Casinos.com

FIGHTING TALK

New Sportingbet CEO will continue to expand activities in the USA

The newly appointed Chief Executive Officer at Sportingbet, Andrew McIver clearly has no intention of allowing himself to be intimidated by the activities of a US federal and state law enforcement seemingly intent on disrupting online gambling sportsbooks and damaging international companies (see previous Online-Casinos.com/InfoPowa reports).

Speaking to the Financial Times in London this week, he said that he is determined to expand activities in the United States, where the online gaming company's ex-chairman, Peter Dicks, was arrested earlier this month and later allowed bail.

McIver told the Financial Times that he believed the United States was the only market worth serious investment. "It's the U.S. - or what's the point? I still hold that view," the newspaper quoted McIver as saying.

Eight U.S. states have laws prohibiting Internet gambling: Washington, Nevada, Illinois, Indiana, Louisiana, South Dakota, Michigan and Oregon. The arrest of Dicks marked the first time one of those states has taken action against one of thousands of big-time online gambling operations. Millions of American players bet an estimated $6 billion per year online, according to industry figures.

U.S. bets account for about two-thirds of the profits at Sportingbet, which reported profit of GBP 20.7 million ($20.7 million) and revenue of GBP 276.1 million ($519.4 million) from the Americas in the nine months ended April 30.

"You can't ignore the U.S.," Sportingbet spokesman George Hudson agreed. "We're going to focus on acquisitions ... we're going to be in it for the long term."

McIver said some investors had not taken account of the risks "associated with an industry mired in regulatory uncertainty."

"Everyone knew it was a risk. Eight years ago, people came in and supported the industry and knew full well the risks," he was quoted as saying. McIver said the company's competitors were overly optimistic in talking about developing the industry outside of the United States.

"If you take the U.S. business away they will be a shadow of their former selves," he said.

The views were apparently well received by the market - Sportingbet shares rose 4.4 percent to 189.5 pence ($3.57) on the London Stock Exchange.