Betcorp Bales Out

Published: Thursday, October 12, 2006 Online-Casinos.com

BETCORP BALES OUT

Australian public company will ban US players when new Act is signed into law

Online gaming company Betcorp said on Thursday it would pull out of the United States if President George W. Bush signs into law a bill to ban online gambling financial transactions there.

"Given that a substantial proportion of the group's customers are located in the United States, this will have a very material adverse impact on the future prospects of the group," it added.

Betcorp's shares lost half their value last Tuesday on news of the ban, mirroring the rest of the sector, which is mostly London-listed and lost about $7 billion of market value.

Betcorp shares fell 28 percent to close at a record low of 54 cents on Thursday, valuing the group at A$11.5 million