Sportingbet Settlement Good For Business

Positioning in a legalised US market and acquisition opportunities are possible benefits Investors were clearly pleased with the news this week that Sportingbet had settled with the US authorities and cleaned its slate of pre-UIGEA hurdles The $33 million settlement triggered an almost immediate reaction from the London market, where the company's shares soared 12 percent, raising the market value of the business to some GBP 400 million. Analysts opined that by removing the threat of US prosecution, Sportingbet has set itself up as a desirable acquisition by other groups active in the industry's trend toward consolidation, with Party Gaming tipped as a possible buyer. At the same time the online gambling operator has made itself considerably more appealing to investors.