888.Com To Obey US Online Gambling Law
Published: Monday, October 02, 2006 Online-Casinos.com
888.COM TO OBEY NEW U.S. ONLINE GAMBLING LAW
Company will continue to monitor the US situation
888 Holdings has confirmed that its board of directors has decided to suspend participation by US based customers in activities covered by the new US legislation.
The company will implement this suspension immediately upon the legislation taking effect and the suspension will continue for so long as the legal situation remains the same, it revealed in a statement.
888 said it will "...continue to seek clarification of the overall US legal position to determine whether and to what extent, if any, resumption of participation by US customers is feasible", but stressed that, at present, "....no assurance can be given that this will be possible'.
888 vowed to "...continue and develop those aspects of its US business which are not affected by relevant legislation".
In the six months to end June, revenues from non-US players amounted to approximately 48 percent of the group's net gaming revenue and in the second quarter of 2006 approximately 68 percent of new customers were non-US.
"The board believes the company is well placed to achieve further growth outside the US and will continue to focus its attention on growth in non US markets," 888 said. The company warned it will review its fixed cost base in the light of the suspension of US business and this may result in charges being taken in this year's results.
888 said that, while suspension of US activities will have a material adverse impact on results for this year and beyond, it has significant cash resources which are "more than adequate to continue its operations and further develop its business taking account of sums required to cover return of deposits to US customers and the dividend payment due to be made to shareholders on Oct 31".
"Notwithstanding the planned suspension of US business referred to above, the board is confident that 888 remains a viable, profitable business and looks forward to pursuing growth opportunities in its international markets with continued vigour," the statement concluded.
