Tuesday, September 26, 2006

The crackdown on internet gambling in the US has begun to frighten off
senior directors. World Gaming chairman James Grossman and non-executive
director Clare Roberts have both resigned from the online gaming group on
fears they will be arrested in the US. advertisementDavid Carruthers, chief
executive of Betonsports and Peter Dicks, chairman of Sportingbet, have both
been arrested in the US recently in connection with online gambling laws.
The arrests have prompted others, including PartyGaming's chairman Michael
Jackson, to say he would not travel to the US unless absolutely necessary.
Both Mr Grossman and Mr Roberts practice as attorneys in the US, outside
their work for World Gaming, while Mr Grossman is also an adviser to the US
Government, a spokesman said. Ms Roberts is a former Attorney General of
Antigua. "Clearly they've got other business interests and they've got to be
able to go to the US to be able to carry on their other business interests,"
World Gaming's spokesman said. It said replacements would be named in due
course.

World Gaming, which makes the bulk of its money from US gamblers, said
earlier this month it was in talks over a possible all-share takeover by
Sportingbet. However, Sportingbet shares collapsed after Mr Dicks was
arrested.

Online sports betting in the US contravenes the 1961 Wire Act, though
whether internet poker and casino games break that law is a legal grey area.