LONDON: British gaming site Sportingbet Plc. said it has sold its operations in the U.S. to private investors for $1, as internet-based gambling is poised to be banned in that country.
The London-based company said in a statement that it has sold its sports betting and casino operations in the U.S. to Jazette Enterprise Ltd. for $1.
In a statement in London, the company said, it has received cash consideration of $1 for the shares and related assets of the U.S. operation, Sportsbook.com, and has "discharged excess liabilities amounting to approximately $13.2 million."
The firm said had it decided to close the business, the cost of severance and closure would have amounted to approximately $14 million. This has resulted in a total saving of circa $27.2 million, it added.
The firm's chief executive designate Andy McIver said the company is saddened to dispose of such a fantastic business as a result of political actions in the U.S. Congress.
The U.S. Congress has approved a bill, the Unlawful Internet Gambling Enforcement Act of 2006, in September banning internet gambling and president George Bush is expected to sign the bill into law Friday.
Sportsbook.com is expected to operate as a private company with offices in Dublin, Antigua, Vancouver and Costa Rica.
Sportingbet will continue to operate its Paradise Poker business, European sports, casino and poker business and Australian sports business but will not accept U.S.-based bets.
Sporting bet's shares lost 13.3 per cent Thursday close at 65 pence, valuing the company at 274 million pounds.
