Leisure & Gaming's U.S. gaming to continue in private hands

[clevfan]

L&G's U.S. gaming to continue in private hands
Wed Oct 11, 2006 7:06 AM ET



LONDON (Reuters) - The U.S.-focused gambling operations of Britain's Leisure & Gaming are likely to be taken private and continue operating after online gambling is banned there, a source close to the company said on Wednesday.

Leisure & Gaming said on Tuesday it would block U.S. gamblers from its sites, and was in preliminary talks to sell its U.S. operations.

"All the American facing business is likely to carry on under private ownership, and the impact on customers should be minimal," said the source. "The management is expected to be unchanged."

The source added that online gambling had become impossible for publicly-listed companies like Leisure & Gaming.

[The Major]

I feel sorry for ther shareholders who are going to get it up the ass. This will be the MO of all these public companies. Pretend they sold to someone else and continue on private. I can hardly wait to hear the names of the supposed private "buyers" Hopefully they are creative enough!!!

R

[mvbski]

<div class="FTQUOTE"><begin quote>Originally posted by: The Major

I can hardly wait to hear the names of the supposed private "buyers" Hopefully they are creative enough!!!

</end quote></div>

My sources told me Dick Hertz is involved [img]i/expressions/face-icon-small-happy.gif[/img]

[all-in]

I can see the FEDS now making sure they have all of the director's and officer's names just in case they don't resign so they can charge them with the wire act after these "sales" to the private sector go through.

[StarnetGypsy]

Major ..

Want to make a side-wager that the group who ends up buying SPORTSBOOK is listed in Gibralter? [img]i/expressions/face-icon-small-wink.gif[/img]

Good call.

[StarnetGypsy]

Here's the breakdown so far of who's doing what (also posted in another thread but this one is more relevent).


US legislation fallout
Operators reassess their positions with regard to US market.

Sportingbet has announced it has received a number of approaches for
its US-facing businesses. Any potential sale would have to be agreed
on and signed by the end of this week, before President George W. Bush
signs the Unlawful Internet Gambling Enforcement Act and makes it law.
In its statement released today, Sportingbet said any deal would have
to "be completed prior to the act becoming law", but that "based on
the approaches received so far, it is unlikely that any such sale will
realise significant cash consideration". Possible bidders mentioned
include Bodog founder and chief executive Calvin Ayre and PartyGaming
founder Ruth Parasol. A third option would be a potential management
buy out led by Sportingbet founder Mark Blandford, although this one
is thought to be unlikely.

UK press reports linking Puetra Sampoerna, the owner of sportsbook and
gaming operator Mansion, to a potential bid for PartyGaming have been
discounted by industry observers. Also, Party's European-focused
sportsbook Gamebookers will re-launch in early November as Partybets.

The new name comes as the bookmaker is integrated into the PartyGaming infrastructure and the company shifts its focus towards maximising European sports and gaming revenues.

World Gaming, whose shares stopped trading on the London Stock
Exchange further to the US anti-online gaming legislation passing last
week, is expected to either close down its operations or be taken back
into private ownership in the near future. However, the first option
is thought more likely.

As published yesterday on this website, it is believed the US-facing
side of the Leisure and Gaming business will be taken back into
private ownership in order to keep operating. The most likely outcome
would be a management buy out of the VIP, Nine and English Harbour
businesses.