|Betcorp, the AIM-listed online gaming company, has announced that it is no longer taking telephone bets from American residents, and is reviewing its US-facing businesses which currently account for up to 85% of revenue, in the wake of the BetOnSports affair.|
Chief executive Colin Walker explained that Betcorp would continue to monitor its US-facing businesses in the light of continued uncertainty about the legality of online gaming. 'We're registered in Antigua, where we take bets, and the view we had understood from our legal advisers was that we had been acting legally and appropriately. Recent events have cast that into doubt.'
Betcorp shares plummeted more than 40 per cent in value following the arrest of BetOnSports chief executive David Carruthers, forcing the company into a geographical expansion outside of the US, with Europe being its primary focus.
This latest news comes as Betcorp reported a 146 per cent jump in pre-tax profits to $4.6 million during the six months to the beginning of July, whilst total gross revenues from players rose 75 per cent to $22 million and active customers increased by a third during the period to 27,281.