|Betcorp have sold of its Australian based brand Sportsbet to Australian businessman John McDonald. The decision to sell the brand was one forced by the ruling of the Northern Territory Licensing Commssion (the region in which Sportsbet is based), who issued Betcorp with a notice questioning the company’s right to a license last month. |
The decision of the Licensing Commission occurred after a change in Betcorp’s structure resulted in Bill Scott, a convicted racketeer, becoming one of its largest shareholders. The original granting of a license for Sportingbet was done so with the condition imposed that Mr Scott could not evolve into the position within the company he eventually did.
John McDonald has purchased the company for an undisclosed amount, and the licensing query has now been dropped. However there is a new condition that has been imposed, which stipulates that the site can not hold any links to other gambling sites. The chairman of the NT Licensing Commission John Withnall said of the purchasing process: 'Sportsbet had to show us that its structure was completely separate to Betcorp…We are satisfied that Mr McDonald privately and personally financed that purchase and he is the owner of Sportsbet.' He also added that the commission believed John McDonald was an “acceptable person to hold that position”. Betcorp have just recorded a loss for the financial quarter ending in September, following the sale of Sportsbet. The company have attributed factors such as restructuring costs, write offs of abandoned acquisitions and costs associated with the selling of Sportsbet for the downturn in results.