Incoming Group Chief Executive Statement

My first review as Group Chief Executive comes at a very disappointing time. The Board and I are particularly dismayed by the regulatory developments in the US over recent months. The Unlawful internet Gambling Enforcement Act, passed by Congress on 29 September and enacted by President Bush on 13 October 2006, resulted in the Board having no choice but to withdraw all services to US based customers. This will have a significant impact on the Group’s trading results going forward. However, we retain strong European and Australian businesses along with the non US-facing element of Paradise Poker, and we will build on these.

Concentrating on the year just ended, Sportingbet reported another record performance across all product areas and all geographies. This growth was particularly pleasing having come off the back of a significant increase in the size and scale of the business the previous year.

However, the post year end sale of the US-facing sports and casino business and closure of the US-facing poker operations will result in significant exceptional costs in the new financial year. These will include an impairment of the goodwill relating to the investments in the US-facing sports and casino operations and Paradise Poker together with a restructuring of overheads, the cost of which is expected to be in the region of £10m. Following this restructuring, the remaining three income streams will be more profitable and will be supported by a much leaner cost structure. Despite the setbacks, the Board has once again been supported greatly by the hard work of its employees, and we all look forward with confidence.

Andrew Mclver
Group Chief Executive
(from 17 October 2006)

Sportingbet is an official sponsor of Euroleague Basketball, Europe’s highest club level basketball competition.

Sportingbet was confirmed as ‘the most powerful firm in global egaming’ by leading industry magazine ‘eGaming Review’, coming top in its ‘Power 50’ industry review.