The Leisure and Gaming plc group has joined other Internet gambling companies in opening negotiations with the US Department of Justice in a bid to clean its pre-UIGEA slate prior to the possible legalisation of online gambling in the United States.
CEO Richard Creed said he was cautiously optimistic about the prospects of a successful outcome to talks with United States officials. L&G grew out of the US-facing VIP Internet sportsbetting group on the passage of the Unlawful Internet Gambling Enforcement Act in 2006 and has been operating in Europe with a London listing.
"We actually sustained a cash loss on our US activities because the price paid for VIP at float was a lot higher than it sold for after UIGEA passed," Creed said this week. "So we are in a very different situation to other former US-facing operators."
Subject to a satisfactory outcome to the negotiations, Creed said the company hoped to play a role in industry consolidation, either as a buyer or seller. He said the decision to open talks had been a difficult one because L&G had not been in contact with the American authorities since the UIGEA passed three years ago. "But I am here to build up the company, to assess any offers that come in for L&G or acquire other companies if the right opportunity occurs," he explained.
The group's second quarter results for the period ending 31 June show revenues up at €28.4 million, but net margin down by 13.5%. The company recently signed a sponsorship agreement with the football club Palermo in Italy, where it is especially active.
Source: InfoPowa News