Web gaming firm posts loss

Internet gaming group Sportingbet said today it was taking a £252

Internet gaming group Sportingbet said today it was taking a £252.4 million exceptional charge after stopping its US operations.

That led to a first-quarter loss of £241.4 million for the company, but it reported strong growth in gross profit for its operations, with Europe up 55 per cent and Australia up 33 per cent.

Sportingbet sold its US-focused operations for $1 in October, hours before the United States effectively banned online gambling at a federal level.

Group chairman Peter Dicks was arrested in New York the month before at the request of Louisiana, whose warrant charged him with "gambling by computer".

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Despite having quit the United States, Chief Executive Andy McIver said the group still feared action over its past operations.

"We still have a travel ban on any director going to the United States," he said. "It's very hard to find out what issues individual states have with you."

But the company reported strong growth in gross profit for its continuing operations, with Europe up 55 per cent and Australia up 33 per cent.

Gross profit from the operations rose by 48 per cent to £31.7 million in the three months to October 31st.