Gambling News by Gambling Headquarters

Britain's Sportingbet and Leisure & Gaming both pulled out of the United States ahead of a ban on Internet gambling on Friday, each selling their U.S. operations to private investors for $1. Smaller rival World Gaming meanwhile said it was impossible to continue in business and called in administrators. All three companies were rushing to complete the deals before President George W. Bush signed a bill to prohibit Internet gambling into law on Friday. Sector leader PartyGaming and 888 have already announced their exits from the United States. "We are saddened to have to dispose of such a fantastic business as a result of political actions in the U.S. Congress," Sportingbet Chief Executive designate Andy McIver said on Friday. Sportingbet said it received $1 for the U.S. operations and had discharged liabilities of $13.2 million and avoided closure costs of $14 million. Leisure & Gaming Chief Executive Alistair Assheton led a management buyout of his group's U.S. operations for $1, rather than close them down and fire 300 staff. The exit from the United States comes after Republican legislators delivered a heavy blow to Internet gambling this month when Congress unexpectedly approved a bill to enforce prohibition of online gaming. Sportingbet's volatile shares rose by 5 percent in early trading before falling 12 percent to 57 pence by 1406 GMT, valuing the group at almost 240 million pounds ($447 million) -- less than a sixth of its value of 1.6 billion pounds in July before the start of the U.S. clampdown on Internet gaming.