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World Gaming appoints administrators; directors resign


LONDON (AFX) - World Gaming PLC said it has appointed administrators and its directors have resigned because it will be unable to continue its US-facing operations should anti-gaming legislation be signed into law in that country.

The AIM-listed online gambling company, whose shares were suspended on Monday, said the decision to call in administrators comes after the US Congress passed the Unlawful Internet Gambling Enforcement Act, making it illegal for banks and credit card companies to settle payments to online gambling sites.

The law must still be signed by President George Bush.

'This decision (to call in administrators) follows discussions with all key parties and after receiving appropriate legal advice. These (US) operations contributed the overwhelming majority of the company's revenues for the year to date 2006,' World Gaming said.

The company said it notified its secured creditor of its predicament.

'The secured creditor has subsequently concluded that it is reasonably likely that administration will achieve a better result for the company's creditors than would be likely if the company were to be wound up,' World Gaming said.

Andrew Andronikou and Peter Kubik from UHY Hacker Young have been appointed joint administrators.