Online gambling firm Sportingbet has announced it has sold its US operations for $1 after Congress passed a law banning internet cash gaming.
In a statement, Sportingbet said it undertook a 'comprehensive legal and strategic review' of its US operations following the passing of the Unlawful Internet Gambling Enforcement Act 2006 by US Congress on September 29.
The UK-based company said it sold its US sports betting and casino business to Jazette Enterprises Limited for a nominal fee of $1 (53 pence), with the buyer taking on liabilities of $13.2m.
The decision comes as President George W Bush plans to sign the act today.
'Having considered the legal advice received and the options available, the board concluded that a disposal of the group's US-facing sports betting and casino operations together with the closure of its US poker operations was in the best interest of all stakeholders,' today's statement said.
Sportingbet's share price has been in freefall since US authorities arrested its then chairman Peter Dicks in a crackdown on online gambling. The US division employed more than 500 people.
The deal is subject to a condition precedent that the new legislation is signed by the President of the US and becomes law before the closing of the 109th Congressional Session. If it does not become law the US operations will revert back to Sportingbet.
The group will continue to market its Paradise Poker brand in Canada, Europe and other relevant markets.
