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September 11, 2006

SportingBet PLC Down 43% After Chairman Arrest

posted by MR WAVETHEORY at 9/11/2006 03:55:00 AM
Bloomberg says that SportingBet was down as much as 43% After Chairman Peter Dicks was arrested.
What I find very ironic is that Sportingbet admitted breaking US laws in an interview with the Guardian:
In July, the company admitted to the Guardian that it continued to take a small number of bets from the US by phone. "We are an online operator with 99% of our wagers in the US taken via the internet. However, there is a telephone service available to a select number of customers should they experience problems with the internet when trying to place a bet."
Can you believe it? Whoever is managing their PR clearly lacks a law degree - or any common sense for that matter.

Update: This is a nice quote. Sportingbet's finance director, Andy McIver, said: "Until this is resolved I won't be travelling to the US." He added: "The Louisiana laws involved are incredibly wide-ranging. It covers practically any form of doing anything involving any sort of gaming and a computer." Andy, I think you have more common sense than your CEO. Since there are no other qualified or willing candidates, maybe it's time for you to get a promotion to CEO.

Regarding the second part of Andy's comment, it appears there is a gap between federal and state law. The SportingBet case may boil down to an issue of federalism - whether state laws supercede federal law.

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