27. Contingent liabilities

From time to time the Group is subject to legal claims and actions. The Group takes legal advice as to the likelihood of success of the claims and actions and no provision or disclosure is made where the Directors feel, based on that advice, that action is unlikely to result in a material loss or a sufficiently reliable estimate of the potential obligation cannot be made.

As part of the Board’s ongoing operational risk assessment process, the Board continues to monitor legal and regulatory developments, and their potential impact on the business, and continues to take appropriate advice in respect of these developments.

Following the passing of the Unlawful Internet Gambling Enforcement Act, the Group stopped taking deposits from US-citizens. As this effectively meant it could have no economic activity with its US customers, the Group discontinued its US-facing operations. The Act does not add to or make any clearer the historic position as to US laws relating to the legality of online gaming in the US. This ambiguity and the uncertain approach of the US authorities towards enforcement means that there is a residual risk associated with the Group’s historic US transactions. However, the Board does not consider it probable that a material liability will arise in respect of its historic activities.