Betcorp sells Poker & Gaming for US$9m

In a statement to the London Stock Exchange, and on its website, BetCorp, parent company of online poker sites BetHoldem and 123Poker, said it had sold its BetWWTS Gaming operations based in Antigua and Toronto to Bodog Entertainment Group SA.

Betcorp sold their entire gaming operations for a cash consideration of US$9 Million (4.8m Pounds): US$3 Million on completion and a further four equal quarterly installments during the following 12 months for the remaining US$6 Million.

In addition, Bodog will meet the current liabilities of US$2 Million. So in total, the deal represents an enterprise value on the operations of US$11 Million.

Betcorp said that if the operation has been closed down it would have cost approximately US$6 Million in severance and closure payments.

They noted that the sale was caused by the October 13 signing of the Unlawful Internet Gambling Enforcement Act (UIEGA).

Despite progress in expanding markets outside the United States, "the US market still represented over 85% of the Group's revenues in the period from 3 July 2006 to 13 October 2006."

Near the end of their statement, Betcorp noted: "The Board received legal advice and representations from its lawyers, bankers and other advisors and concluded, in common with many other listed companies in the sector, that it is no longer possible for the Group to provide its services to United States residents."

"The two key issues which led to this conclusion are the possibility of the extra-jurisdictional application of United States legislation and the restrictions on financial transaction processing which are following from the Act."

"As a result, the Group suspended the accounts of United States residents on 13 October 2006."

More Poker News Articles

PokerStars to Sponsor Irish Poker Championship
12am Wed Mar 31st, 2010

PokerStars.com, the world's largest online poker site, just announced that they will throw their substantial weight behind one of Ireland's major poker festivals, The Irish Poker Championship (IPC), as part of the new PokerStars.com UK and Ireland Poker Tour.

UIGEA Delayed 6 Months in Temporary Victory for Online Poker
12am Thu Dec 3rd, 2009

Days before the December 1 deadline for implementing the UIGEA, the U.S. government announced a six-month postponement of the poorly defined anti-gambling regulations. The U.S. Department of the Treasury and the Federal Reserve Board jointly released a statement moving the deadline for UIGEA compliance to June 1, 2010.

Fabrice Soulier Joins Everest Poker's Pro Roster
12am Thu Nov 26th, 2009

To further strengthen its support for French poker in anticipation of the opening of that market, Everest Poker has signed renowned French poker pro Fabrice Soulier as its latest ambassador.

HHPT Co-Sponsors Bayou Poker Challenge Ladies Event Dec. 20
12am Wed Nov 25th, 2009

The HighHeelsPokerTour (HHPT), the first all women's poker tour launched on the East coast, will wrap up their 2009 schedule at Harrah's New Orleans on December 20th where they will co-sponsor the Ladies Event #14 no-limit Hold'em at 12 pm.

OPPAGA Reports on Florida's Online Poker Options
12am Tue Nov 24th, 2009

Given that UIGEA permits individual states to regulate online poker, the Florida Legislature's Office of Program Policy Analysis and Government Accountability (OPPAGA) published a report this week presenting three options available to Florida State lawmakers in order to protect consumers from unlawful internet poker: regulate it, prohibit it, or carry on with the status quo pending federal legislation.

BC Poker Champion Arrested, Charged with Manslaughter
12am Tue Nov 24th, 2009

Just two days after taking down the BC Poker Championships Main Event, Sophon Sek of Cloverdale, BC, was arrested in connection with one of the most storied crimes in the Province's history.

Local Businessman Bags European Poker Tour Vilamoura Bling
12am Sun Nov 22nd, 2009

The European Poker Tour rolled into the Casino Vilamoura last week, instantly generating the richest poker prize pool in the nation of Portugal's history.

Keikoan Captures Harvey's Lake Tahoe WSOPC Championship
12am Thu Nov 19th, 2009

This week marked the finale of the biggest annual tournament series in Northern Nevada, the WSOP Circuit championship at Harvey's Lake Tahoe. While the Main Event saw only a modest turnout, it did boast of a tough final table, and a WSOP bracelet owner as the eventual champion.

WSOP Main Event Champ Joe Cada to Appear on Letterman
12am Wed Nov 18th, 2009

The poker world will receive some late night attention tonight as "The Kid" Joe Cada, the youngest champion in the four decade history of the World Series of Poker Main Event, takes a seat next to embattled talk show host David Letterman.

First Korean Champ of Asia Pacific Poker Tour Crowned in Cebu
12am Tue Nov 17th, 2009

Another stop on the Asia Pacific Poker Tour is in the books, this time it's the APPT Cebu in the Philippines, and for the very first time a Korean player has come out on top.