• ONLINE GAMBLING STOCKS DIVE - AGAIN - AS US DOJ HOLDS GAMING EXECUTIVE - AGAIN.

    07 September 2006

    Newspaper

    REUTERS UK
    Thu Sep 7, 2006 2:05 PM BST162
    By Pete Harrison

    LONDON (Reuters) – The United States detained a second Internet gaming executive on Thursday, adding to fears it is cracking down on the lucrative industry and sparking share price falls that wiped over $1.5 billion (800 million pounds) off the market value of the sector.

    Online bookmaker Sportingbet said its chairman, Peter Dicks, had been detained by U.S. authorities — a move that mirrored the detention in July of another online gaming CEO on racketeering charges.

    Shares reacted instantly across the $12 billion-a-year industry, with industry leader PartyGaming plunging as much as 19 percent, 888 Holdings down as much as 18 percent and Playtech down as much as 17 percent.

    Shares in Austria’s bwin.com Interactive Entertainment also slumped.

    “This arrest highlights the U.S. Department of Justice is going after online gaming companies by arresting their board members,” said a London analyst who declined to be named.

    Sportingbet said it had sought immediate temporary suspension of its shares pending clarification of the situation. Dicks was arrested at 0100 GMT on Thursday and his hearing is scheduled for 2 p.m. British time, it added without giving a location.

    Analysts said Sportingbet’s U.S.-focused sports betting business was similar to that of BETonSPORTS, whose CEO David Carruthers was arrested in Texas in July.

    Carruthers and seven others pleaded not guilty to racketeering and other charges. The Costa Rica-based company has since said it is closing its U.S. business.

    READ THE COMPLETE ARTICLE AT REUTERS UK

    Related News

    • Betsoft brings back safari sam 2

      New Online Slots

      BetSoft Brings Back Safari Sam 2Ivan Stefanovic21 May 2021

      Original BetSoft slot, Safari Sam, was released in 2012. Safari Sam 2 follows the original version in 2021, and the adventure starts in the African savannah with the most famous hunter. However, a few changes have been made and now the Wild Girl has joined Sam in his quest for the mainland's wildlife. The original game's graphics are still nice and can compete with many other titles, but this sequel goes even further.

      Read full article
    • Relax gaming subsidiary in gibraltar gained uk license

      Gambling News

      Relax Gaming Subsidiary in Gibraltar Gains UK LicenseIvan Stefanovic19 May 2021

      Relax Gaming (RG) saw its Gibraltar subsidiary, Relax Gaming Gibraltar, receive United Kingdom Gambling Commission approval, which indicates new growth opportunities "in one of the most important markets in the world." This means that RG games are available to UK providers via its Gibraltar subsidiary, which the group welcomes as “another milestone” in the group's continued growth strategy.

      Read full article
    • Leovegas goes live with new games studio blue guru games

      Gambling News

      LeoVegas Unveils New Game Development Studio Blue Guru GamesIvan Stefanovic08 May 2021

      LeoVegas has opened the curtain for Blue Guru Games, the group's game studio that will release its first games later this year. This is part of their strategy to further control the gaming industry's value chain, with games that will be created for LeoVegas. It is planned to release a minimum of 20 games over the next 2 years. From the very beginning, the company will have an experienced team in the game development sector.

      Read full article