Isle of Man-based sportsbook Betinternet’s year end results said it had reacted positively to the “significant challenges” it faced following news reports involving it in legal proceedings in New York City in January 2005.
According to its statement, “Two of the individuals under investigation were officers of the International Players Association, an organisation which had for two years referred ‘high rolling’ players to Euro Off-Track, now European Wagering Services. As a result of the unwelcome publicity and reaction of the tracks, we had no option but to cease this activity. This had a detrimental effect on our turnover and profitability.”
Betinternet’s year end results to end of May 2005 showed group turnover had risen to £93.7m, an increase of 96% on 2004 (£45.5m), operating loss before amortisation had come down £0.9m to £1.1m on 2004 and group loss of £1.9m was the same as last year, after increased amortisation charge of £0.7m (2004: £0.2m).
Betinternet highlighted the increased diversity of its products and the developments and improvements made to its operating platform as contributing factors to the improved results.
As a result of the legal issues affecting EWS, Betinternet has decided to take wagers from the US and has chosen Florida-based software firm IGW as a development partner and will relocate its servers in Curaçao.
Betinternet expects these moves to be completed by early 2006. “Accordingly, we are confident of seeing a significant boost to performance within the sportsbook during the current financial year,” the company stated.
Denham Eke, chairman of Betinternet, said: “We have reacted positively to what we believe is a temporary setback in the otherwise excellent progress of European Wagering Services and have directed our attention creatively on the performance of the sportsbook.”
source : egr magazine
