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September 7th 2006
SportingBet chairman detained in USA
SportingBet, owners of Paradise Poker, announced that non-executive chairman Peter Dicks was detained by US authorities in the early hours of this morning while visiting the US on non-Sportingbet business.
Dicks' detention follows the arrest of BetonSports's former chief executive David Carruthers earlier this year and the subsequent 22-count indictment served on BetonSports, alleging various charges of racketeering, conspiracy and fraud, including breaches of the 1961 Wire Act.
The Wire Act explicitly forbids businesses from using a wire communication facility to assist in placing bets on 'any sporting event or contest'.
Sportingbet generates around half of its revenues from US sports betting.
Sportingbet said it had sought immediate temporary suspension of its shares pending clarification of the situation. Shares in the company were down 1.8 percent at 238-1/2 pence at the time of the suspension.
The news hit other shares across the sector, with PartyGaming down 10.5 percent by 11:20 a.m., 888 plc down 15.2 percent and Playtech down 11.65 percent.
This overshadowed the news that PartyGaming, which is the world's biggest online gaming firm, reported first-half earnings which were in line with market expectations and said it remains confident about its future prospects.
Submitted: 07/09/2006 17:30:26
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