Reports coming out of British business media are discussing the surprise departure of Mark Blandford, a Sportinbet plc founder, and Bob Holt, a fellow member of the board of directors. Both men announced their intentions to resign from the beleaguered online gambling company’s board of directors.
In what seemed to be very low-key response to the departure, Sportinbet’s CEO Andrew McIver said: "As the company continues to drive further efficiencies from its business we have agreed to reduce the size of the board". According to the company, both Blandford and Holt plan to pursue other business interests. Holt’s position as chairman of the audit committee will be taken over by Sean O’Connor, the senior independent director. The changes are effective immediately.
The recent passage of anti-online gambling legislation in the US has seriously impacted the online gambling industry and online gambling companies. The legislation was tacked onto a popularly supported bill aimed at improving port security and works by making it illegal for banks and credit card companies to process financial transactions between US residents and online gambling companies. President Bush signed the bill into law on October 14th
Since going into effect, the US gambling market, worth about $15.5 billion last year in ‘spend’ value (the amount gambling companies win from their clients or the amount gamblers lose) and considered to be the most lucrative online gambling market of all, is now off-limits.
The impact of the legislation has been so great that several European-based online gaming companies either collapsed or were forced to sell their U.S. operations. Both Sportingbet plc and Leisure and Gaming plc, for example, sold their U.S. operations for a symbolic $1. Online gambling businesses that have managed to continue operating are still feeling the effects of a closed US market.
Peter Dicks, 64, resigned as Sportingbet's non-executive chairman after being detained in New York on September 6. Customs officials arrested him after discovering that there was an outstanding warrant issued for his arrest. The warrant was issued covertly back in May by the Louisiana State Police Gaming Enforcement Division and charges Dicks with gambling by computer, a felony punishable by up to five years in prison and a $25 000 fine. He was later released when New York authorities refused to recognize the attempt to extradite Dicks to Louisiana.
Posted on: February 3, 2007
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