A significant number of Members and some Merchants reside in the United States and certain legislative initiatives at the federal level could have a negative impact on the Company’s risk profile and ability to provide services to US Merchants or Members in relation to Internet betting or gambling. A summary of certain of these legislative initiatives is set out in paragraph 5 of Part I of this document. Whilst the Group does not have a presence in the US, it does have contractual relationships with two US companies (which
are related to two of the Directors as described in paragraph 7.6 of Part VI of this document). This is potentially a risk for the Group because the money held by those US companies would comprise primarily of wagering money and may therefore be vulnerable to freezing orders by state and federal prosecutors and could result in the Group being enjoined to such proceedings. |