If there is one thing that Betcorp shareholders can finally applaud, it's that the online sports betting operator knows how to make a better exit than its larger and more illustrious rival, Sportingbet.
The UK-listed Sportingbet chucked its US operations for just $US1 the day before US President Bush effectively outlawed most of the online gambling business in the US of A.
Betcorp yesterday confirmed a Herald report that it would offload its sports betting operation, WWTS, for up to $US9 million ($11.84 million) in a sale to Antigua-based Bodog.
The new owner will also assume liabilities of $US2 million, while Betcorp says it avoids closure costs which could have reached $US6 million.
One potential fly in the ointment is that the sale price is dependent on the business's performance in the 12 months following completion of the sale.
Customer accounts have been frozen for the better part of a week now.
It should be interesting to see how they react when WWTS reopens for business.
There is also the fact that Betcorp will effectively be a small-time online casino and poker operator after jettisoning its sports betting business.
Shares jumped as high as 52c yesterday before closing 1c lower at 40c.
source : www.smh.com.au
