Could this Spook the Bookies?
Online bookmaker Sportingbet said its chairman faced charges in the United States for providing "gambling by computer," sparking fears no executive in the $12-billion-a-year industry was safe from prosecution.
Sportingbet said Chairman Peter Dicks had been arrested at JFK Airport in New York early on Thursday for alleged violation of Louisiana State laws, mirroring the arrest in July of another CEO on racketeering charges.
Finance Director Andy McIver told Reuters on Friday, "Until this is resolved I won't be traveling to the U.S."
"The Louisiana laws involved are incredibly wide ranging," he added. "It covers practically any form of doing anything involving any sort of gaming and a computer."
The arrest of Dicks added to fears of a U.S. crackdown on the lucrative industry and wiped over $1.5 billion off the stock market value of the UK-listed sector on Thursday.
His detention follows that in July of David Carruthers, Chief Executive of rival firm BETonSPORTS, on racketeering charges, to which he pleaded not guilty.
His Costa Rica-based company has since said it is closing its U.S. business.
"It's possible there's a wider policy of crackdown, although being delivered through unsatisfactory and piecemeal legislation," said analyst Paul Leyland at Arbuthnot Securities.
Another London analyst who declined to be named, said: "What was he (Dicks) doing? You just don't travel to the U.S. any more if you're in that business."
EXECUTIVE TARGETS
Investors had been keen for insight into whether the arrest of Dicks was linked to Sportingbet's sports betting operations, or whether it also covered other online gambling activities like poker and casino.
"The fact that Louisiana state law does not make a distinction between the type of gaming activities being provided means that this latest move is likely to have implications for William Hill, 888.com and PartyGaming in particular," said analyst David Jennings at Davy stockbrokers.
Individual states might now try to go after other Internet gaming companies, he added.
PartyGaming's shares, which plunged 19 percent on Thursday before closing 9.8 percent lower at 105-3/4 pence, were broadly flat on Friday. 888's shares recovered 2 percent to 147 pence at 1035 GMT.
Another London analyst said: I'm surprised this news isn't being taken more negatively ... Louisiana makes no distinction between sports betting and other games, which means that they are as likely to issue an arrest warrant for a PartyGaming or 888.com executive as they are for a Sportingbet one."
A PartyGaming spokesman said: "It would be inappropriate to comment on Sportingbet's situation, especially since we've yet to find out what this is all about." 888 was not immediately available for comment, but William Hill said its lawyers were continually reviewing the situation.
Online bookmaker Sportingbet said its chairman faced charges in the United States for providing "gambling by computer," sparking fears no executive in the $12-billion-a-year industry was safe from prosecution.
Sportingbet said Chairman Peter Dicks had been arrested at JFK Airport in New York early on Thursday for alleged violation of Louisiana State laws, mirroring the arrest in July of another CEO on racketeering charges.
Finance Director Andy McIver told Reuters on Friday, "Until this is resolved I won't be traveling to the U.S."
"The Louisiana laws involved are incredibly wide ranging," he added. "It covers practically any form of doing anything involving any sort of gaming and a computer."
The arrest of Dicks added to fears of a U.S. crackdown on the lucrative industry and wiped over $1.5 billion off the stock market value of the UK-listed sector on Thursday.
His detention follows that in July of David Carruthers, Chief Executive of rival firm BETonSPORTS, on racketeering charges, to which he pleaded not guilty.
His Costa Rica-based company has since said it is closing its U.S. business.
"It's possible there's a wider policy of crackdown, although being delivered through unsatisfactory and piecemeal legislation," said analyst Paul Leyland at Arbuthnot Securities.
Another London analyst who declined to be named, said: "What was he (Dicks) doing? You just don't travel to the U.S. any more if you're in that business."
EXECUTIVE TARGETS
Investors had been keen for insight into whether the arrest of Dicks was linked to Sportingbet's sports betting operations, or whether it also covered other online gambling activities like poker and casino.
"The fact that Louisiana state law does not make a distinction between the type of gaming activities being provided means that this latest move is likely to have implications for William Hill, 888.com and PartyGaming in particular," said analyst David Jennings at Davy stockbrokers.
Individual states might now try to go after other Internet gaming companies, he added.
PartyGaming's shares, which plunged 19 percent on Thursday before closing 9.8 percent lower at 105-3/4 pence, were broadly flat on Friday. 888's shares recovered 2 percent to 147 pence at 1035 GMT.
Another London analyst said: I'm surprised this news isn't being taken more negatively ... Louisiana makes no distinction between sports betting and other games, which means that they are as likely to issue an arrest warrant for a PartyGaming or 888.com executive as they are for a Sportingbet one."
A PartyGaming spokesman said: "It would be inappropriate to comment on Sportingbet's situation, especially since we've yet to find out what this is all about." 888 was not immediately available for comment, but William Hill said its lawyers were continually reviewing the situation.
