Sportingbet, one of the largest online gambling companies in the world is selling its U.S. division to Jazette Enterprises for exactly $1.
There is a catch, of course. This is done to offload the company's $13.3 million debt. Sportingbet's shares have dropped, like many other online gambling companies, due to the recent bill against online gambling that President Bush signed and turned to law last Friday.
Sportingbet shares went down 0.38 percent to 64.75 pence that Friday. The company's shares dropped 50% since September, from around 120 pence per share.
According to Sportingbet, selling its U.S. division (which consists of 500 employees) would save the $14 million cost of closing it down. According to analysts, it is very likely that the company, and other companies like it, will have to join forces with other companies and even competitors
Sportingbet stopped accepting wagers from American customers on Friday, just a few hours before President Bush signed the Ports Security Bill, to which the anti-gambling bill was attached to.
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