Monday, August 14, 2006

LONDON, England (AFP): BetOnSports, the multibillion-dollar London-listed group embroiled in a US crackdown on Internet gambling, said on Friday that it planned to cease operations in Antigua and Costa Rica as soon as possible.

In a statement to the London Stock Exchange, where the group's shares are currently suspended, BetOnSports added it would pay any liabilities to staff and creditors and repay balances due to US customers "in an orderly manner".

BetonSports made the announcement in light of the temporary restraining order issued by the United States District Court for the Eastern District of Missouri preventing it taking bets from US citizens.

The order came after a 22-count indictment was served on BetonSports and 11 individuals, including former chief executive David Carruthers and the company's controversial founder Gary Kaplan, alleging various charges of racketeering, conspiracy and fraud.

The crackdown highlights the effort in the United States to enforce a ban on Internet gambling even though most of the websites taking bets are offshore.

The company said the repayments "will take time and their successful completion will depend upon the company's ability to persuade banks and cash processors to release its funds".

"It also will depend on the company's ability to realise further and sufficient funds from its assets and operations outside Costa Rica and Antigua and to earn sufficient profits from operations which are not US facing," the company admitted.

In its statement, BetonSports said its directors are "taking steps to ensure that the company will not knowingly accept any wagering transactions from US based customers" and would provide further updates in due course.

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