|Australian Internet gaming company Betcorp Ltd has confirmed that it plans to sell its operations in Toronto, Canada, and the Caribbean country of Antigua to Bodog Entertainment Group for US$11 million.|
The move will see Betcorp withdraw from the online gaming market in the US, after the passing of the Unlawful Internet Gambling Enforcement Act effectively eliminated the company’s business capability in a market that had accounted for 85 percent of its revenue.
Betcorp chief executive Colin Walker remarked, “I am pleased that we have secured the sale of our operating subsidiaries to the Bodog Entertainment Group. In very difficult circumstances we have achieved a satisfactory outcome for shareholders and have been able to safeguard the interests of our customers and employees.'
Betcorp are set to receive a cash consideration of $9 million payable over five instalments, with Bodog assuming liabilities of a further $2 million.
Shares in Betcorp jumped 14 percent to16p this morning as the market applauded its decision to sell its gaming operations. The proceeds are to be returned to investors of the Aim-listed company, whose shares reached a peak of 265p last April.