Betcorp leaves US market

Betcorp., the AIM listed online gaming company has recently announced that it will no longer be taking telephone bets from players who are residents of the United States. It also announced that it will be reviewing it US facing businesses that are currently the source of up to 85 per cent of its revenue in the wake of the recent BetOnSports controversy.According to Chief Executive Officer Colin Walker, Betcorp, will continue to monitor its various US facing businesses because of what is seen as the continued uncertainty about the legality of online gaming. Walker shared that the company is registered in Antigua where all of the bets are taken and the view that the management of the company had understood based on the explanations of their legal advisers is that Betcorp. had been conducting its business legally and appropriately. But the recent events surrounding what has happened to BetOnSports has cast that into serious doubt at this point.

The shares of Betcorp. has gone down by more than 40 per cent in value after the arrest of BetOnSports Chief Executive Officer David Carruthers. This incident has forced the company to conduct a geographical expansion of its its operations outside of the United States, with Europe now being its primary focus.

The latest turn of events comes as Betcorp. reported a 146 per cent increase in pre tax profits to $4.6 million for the six months to the beginning of July. With the total gross revenue from players rising by 75 per cent to $22 million. Active customers, on the other hand, increased by a third for the same period to 27,281.