PAYNE CRITICISES 'DISCRIMINATORY' U.S. LAW

(657) (10-October-2006)

Sportingbet CEO surprised and disappointed that America has chosen to prohibit rather than regulate

The CEO of Sportingbet , Nigel Payne was critical of US government online gambling policy this week in an interview with the Antigua Sun.  Speaking to writer Patricia Campbell, he condemned recent US legislation which will shortly make it illegal for financial institutions to process internet gambling payments, saying it is likely to drive the industry into unregulated hands.

Payne said he is "...surprised and disappointed" that the US government has chosen to move forward with legislation which he classified as discriminatory.

"Sportingbet has received literally thousands of emails from people all over the world, customers and otherwise, asking questions like how come in America you can buy a gun, but you can't place a bet? How come Internet pornography is not banned, but Internet gambling is? To non-Americans these are very good questions," Payne said, adding that despite these questions, the bill is virtually certain to be signed into law, probably some time this week.

"We're disappointed not just because we think it's bad law, but because we think it is specifically against the World Trade Organisation (WTO) ruling that Antigua & Barbuda successfully obtained against America."

Payne lauded the Antiguan government for its support of the industry, saying that he has been impressed with the concern and practical support shown during his brief visit to Antigua.

"The government and all its agencies could not be doing more at this point in time," he said. At the same time, he made the point that despite the best efforts of Antigua & Barbuda's government, it is unlikely that the WTO will move aggressively to enforce its ruling. Payne said that the dispute is a political issue, which means that it is subject to the slow pace of political leaders.

The Antigua and Barbuda authorities are currently considering problems associated with the latest US political moves. One concern for employees in the local and international gaming industry is that operators may be forced to downsize, at least temporarily, as the sector restructures to meet current challenges.

Sportingbet, which out-sources most of its local services to World Gaming, which is itself in trouble employs over 50 people directly in Antigua and has more than 500 additional employees in Cost Rica, Australia, the United Kingdom and other countries.

Asked what the immediate impact on his employees would be, Payne said that he is optimistic that Sportingbet will not have to downsize as a result of the huge financial hit it took last week when shares plummeted and the company lost 64 percent of its value overnight after the announcement that the US Congress has passed the legislation.