The company statement read: “We have decided that the strategy for the U.S. is to enhance our horseracing offerings and to support our global product development initiatives and therefore, at this point, [the company] want the U.S. horseracing and engineering teams to integrate more closely with UK operations. Given these changes, Gerard decided to leave the company to pursue alternative opportunities.”

So, why is Betfair making the change? It is it because of the uncertainty looming over the future of the U.S. online gambling industry? Was Cunningham getting out before it’s too late? Those questions wait to be answered as Barney Frank’s gambling legalization and regulation bill now has 66 co-sponsors.

Stephen Burn will now head Betfair’s U.S. horseracing sector and the Los Angeles office, reporting to Betfair’s UK-based managing director of exchange, Mathias Entenmann. Ravi Keswani will continue to oversee the U.S. engineering and product management teams and run the San Francisco office, reporting to Betfair’s London-based chief technology officer, Tony McAlister.

Cunningham was at the forefront when Betfair entered the U.S. market with the purchase of online wagering and TV racing network TVG in February of 2009. His other deals since then include a $5.5 million round of funding in Watercooler, a developer of fan communities and social games with more than 26 million users, and a deal with America’s Breeders’ Cup that allows Betfair customers to bet directly into U.S. tote pools.