Betcorp Issues Profit Warning
Published: Tuesday, October 03, 2006 Online-Casinos.com
BETCORP ISSUES PROFIT WARNING
And Centrebet warns that new law could drive online gambling dangerously underground
The Australian betting group Betcorp became the latest public company to issue a warning on the consequences of the new US anti-online gambling measure today (Tuesday)
The company said in a statement to the Australian stock exchange that new US laws banning gambling in its biggest market are likely to have "...a material adverse effect" on its business.
"While management will take appropriate measures to mitigate its impact the Act is likely to have a material adverse effect on the operation of the company and its profitability," Betcorp said as its share value halved on sell-offs.
Another Australian operator, Centrebet's chief executive, Con Kafatris told local media that the new US online gambling restrictions could breed a new type of cyber Mafia. Kafatris said the US law's impact on the Australian market place would be zero, though internationally the effects could be drastic.
"In North America casino and poker gambling online is huge and although 99 percent of operators are legal, the new law could make underground operations mushroom," he said. "Internationally it will effect the bank institutions and customer-to-provider transactions."
"I think the government probably needs to make sure punters don't go underground, so it doesn't go back to the 40's and 50's of the Mafia days. This law will create more opportunities for those types of operations."
The new bill may also be a move by the US to create an increasingly exclusive American market, he said. "The US government probably wants to get rid of the foreign operators and open it up for onshore opportunities."
