World Gaming appoints administrators; directors resign

[clevfan]

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.

[clevfan]

Online gambling firm collapses

By Harry Wallop, Business Correspondent (Filed: 13/10/2006)
The Telegraph UK



The beleaguered online gambling industry is bracing itself for a wave of company collapses and redundancies, after World Gaming collapsed into administration today.

It is the first company to crash, following the shock decision of the US senate to outlaw online gaming last month. President George Bush is expected to sign the legislation into force later today.

All the online gambling companies are racing to close or sell their US operations by the time he signs. 888 emerged today as the latest to be looking for a suitor.

Asked if the company would go private, chief executive John Anderson told Dow Jones: "I think that's got to be looked at."

He said all options are being considered, including opportunities to expand the business in Europe. Yesterday, Sportingbet sold its US sports betting and casino business for a nominal $1.

The secured creditors of World Gaming, understood to be Barclays Bank, pulled the plug on World Gaming earlier this morning and called in administrators UHY Hacker Young.

The administrator has issued a statement saying: "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."

All the directors have resigned. The company has operations in Antiqua, Vancouver, London but it is not clear how many employees will lose their jobs.

Gibraltar is likely to be particularly hard hit by the US crackdown. One in ten adults of the island works for the online gambling and betting industry.