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Sportingbet’s settlement with the US Government for $33 million has resulted in a rise in the share price for the publicly traded company. Gambling911.com was the first to release the non-prosecution agreement late Monday night. Sportingbet had settled for a fraction of what PartyGaming settled for ($105 million) a few months back. Both companies are working to gain entrance into the US marketplace should legislation pass that would make online gambling legal. Both firms accepted bets from US citizens at a time when they believe the act “could have been illegal”.
Speaking to Gambling911.com last night, attorney for Sportingbet Stuart Slotnick predicted the market would react favorably to the news.
“As legal counsel for Sportingbet we tried to get them the best deal,” Slotnick said. “The market will look at the number positively. It is a great settlement and Sportingbet can now move forward without fear of prosecution.”
Sportingbet rose 8 pence to 78 pence just before 10 am. It had earlier gained as much as 11 pence to 81 pence.
In addition to being able to gain a foothold in the United States, Chief Executive Officer Andrew McIver also believes the move will help his company to make acquisitions.
“It removes an overhang from the company,” McIver told Bloomberg News on Tuesday. “We exited the U.S. in October 2006. It’s putting the last of that to bed.”
Aaron Goldstein, Gambling911.com
