Australian Betcorp sells out to Bodog Entertainment for $11 million

Betcorp Ltd., an australian online gambling company, said it is planning to sell its operations in Canada and Antigua to the Costa-Rica-based Bodog Entertainment Group, for $11 million.

Following the recent law in the United States, which prohibits banks and credit cards companies from processing gambing-related fees from United States residents, Betcorp, among many other online gambling companies, could not offer its services to most of its clients. 85 percent of its revenue consisted of United States residents and with those lost, the company could not stay in business.

Betcorp will receive a cash consideration of $9 million, payable in five installments, and Bodog will assume liabilities of $2 million. Following the sale, Betcorp's net assets will be comprised of cash.