22-10-2007 Could take 10 years for Sportingbet to make up for the US shortfall, says the FT

While the chief executive of the online betting and gaming group stated last week that losing 75 per cent of the business following the US legislation, but still recording an operating profit for the year was a highly creditable achievement, the Financial Times said it would take five to ten years for Sportingbet to make up the shortfall in profit following its withdrawal from the US a year ago.

When Sportingbet announced its audited results for the year ended 31 July 2007, CEO Andrew McIver said that following the breakdown of takeover talks with Austria's Bwin in July, the company is now likely to focus on building its presence in Europe and particular in Eastern European countries such as Hungary and Bulgaria.

"I'm not some sort of growth junkie. If we were to look at an acquisition it would have to be the right product with the right management and at the right price. We are not out there actively looking to do M&A," McIver told the Financial Times.

In a statement to the stock exchange, Sportingbet said the recent release of the draft implementation guidelines for the UIGEA is juxtaposed with the proactive approach of the World Trade Organisation in censoring the US for its restrictive practices in the gambling sector.

"The US is now under pressure to reopen its market to foreign gambling operators, or agree substantial compensation for not doing so. Currently it appears such compensation would most likely take the form of various relaxations of trade rules between the US and countries that had industries impacted by the UIGEA. It is unlikely to be satisfied by cash payments to those countries and very unlikely to be satisfied by cash payment to the companies involved."

The online betting group denied to be in talks with the US DoJ. "Although we are aware that others in the industry have approached the United States Department of Justice, the Company has nothing material to report at this time."