Lasseters Opts Out Of U.S. Online Gambling

Published: Monday, October 16, 2006 Online-Casinos.com

LASSETERS OPTS OUT OF U.S. ONLINE GAMBLING MARKET

Online gambling division of major Australian land casino company sees "...no alternative."


The U.S. Unlawful Internet Gambling Enforcement Act claimed another victim today (Monday) when the online gambling division of Lasseters, a major Australian land-based gambling company confirmed that it had halted services to the US.

Lasseters said the Unlawful Internet Gambling Enforcement Act would eliminate about half of the world's estimated $US10 billion online gaming industry.

"We have received legal advice from the United States, and, unfortunately, see no alternative but to cease operating in the US market," Lasseters managing director Peter Bridge said.

The withdrawal is likely to be costly for the company - the US market accounts for about 70 percent of Lasseters' revenue.

Lasseters said its profitability for the 2007 financial year was likely to be materially adversely affected by the fall in revenue, costs associated with initiatives to diversify services and improve competitiveness, and write downs. "While the short to medium term impact is significant, the board continues to seek out new markets to mitigate the effect," Lasseters Managing Director Peter Bridge said in a statement.

Bridge said Lasseters was reviewing its operations from its non-US-based markets and would expedite its plan to diversify products in non-US markets. Lasseters would continue to compete in the remaining online global gaming market but would need to significantly change its operations to remain competitive, he said. Changes planned by the company include launching an online sports betting operation.