The beleaguered online gambling industry is bracing itself for a wave of company collapses and redundancies, after World Gaming collapsed into administration today.
It is the first company to crash, following the shock decision of the US senate to outlaw online gaming last month. President George Bush is expected to sign the legislation into force later today.
All the online gambling companies are racing to close or sell their US operations by the time he signs. 888 emerged today as the latest to be looking for a suitor.
Asked if the company would go private, chief executive John Anderson told Dow Jones: “I think that’s got to be looked at.”
He said all options are being considered, including opportunities to expand the business in Europe. Yesterday, Sportingbet sold its US sports betting and casino business for a nominal $1.
The secured creditors of World Gaming, understood to be Barclays Bank, pulled the plug on World Gaming earlier this morning and called in administrators UHY Hacker Young.
The administrator has issued a statement saying: “The secured creditor has subsequently concluded that it is reasonably likely that administration will achieve a better result for the Company’s creditors than would be likely if the Company were to be wound up.”
All the directors have resigned. The company has operations in Antiqua, Vancouver, London but it is not clear how many employees will lose their jobs.
Gibraltar is likely to be particularly hard hit …Read More