Betcorp Limited, which earlier this month announced its delisting from the Australian Stock Exchange so that its shares will only be traded on the AIM market operated by the London Stock Exchange, has decided to stop taking telephone bets from US residents. The move is to minimise legal risks following the arrest of BETonSPORT’s CEO and subsequent closure of its US facing sites in Antigua and Costa Rica. Reduction in personnel and telecommunication costs will partly offset the loss of betting turnover caused by the Betcorp decision.

Last month Betcorp completed the acquisition of Oasis, a Curacao- based US facing online sports betting and gaming operator, for US$9.76 million. Betcorp expects to make annual net operating cost savings of over US$1 million. Commenting on the Oasis acquisition, Colin Walker, Chief Executive Officer said: “Oasis represents an excellent acquisition at an attractive valuation. Betcorp’s ability to integrate acquired companies quickly and reliably means that they are immediately earnings accretive. Oasis clients will benefit from day one from Betcorp’s poker room and its wider range of casino games and sports betting opportunities.”

Betcorp reported pre-tax profits of US$4.63 million in the first six months of this year, up from US$1.96 million in 2005. Gross revenue from players was up 75% and the number of active clients increased by 33%. In the light of events in the United States, the company is expanding its business outside that area. The intended delisting from the Australian Stock Exchange is 31 October 2006 but there will be no change to the corporate structure of the group and the holding company will continue to be an Australian public company.

Betcorp is incorporated in Australia and holds a gaming licence in Antigua and a bookmaker’s permit in the UK. The company’s trading headquarters is in Antigua and its IT and marketing divisions are based in Toronto, Canada. Betcorp will continue to monitor its US facing businesses, which account for nearly 85% of present revenue. The telephone betting operation in the US that has ceased accounted for 9% of revenue, and Betfair will now focus on European markets. (E-08.14.06)

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