British online betting company Sportingbet is hoping for a settlement over UIGEA (Unlawful Internet Gambling Enforcement Act) fines with the United States Department of Justice after nearly two years of deliberation. It would pave the way for the online gaming firm to be taken over by a larger rival, if consolidation is needed, which is what analysts are saying could happen to the entire industry if recent trends continue.
Sportingbet is hoping to settle before the end of the year with U.S. authorities to protect themselves from the threat of prosecution since the UIGEA is now in effect. Passed in October of 2006, the UIGEA outlawed online gaming in the U.S. While it looks like online casinos prepared enough to avoid being overtly affected by the UIGEA, more and more online betting companies are now taking action to avoid prosecution. PartyGaming, one of Sportingbet’s biggest rivals, reached a settlement with U.S. authorities in April of last year by agreeing to pay fines totaling £71 million ($105 million) in return for protection from prosecution. 888 is also joining in on the act with talks of a resolution.
Sportingbet Chief Executive Andrew McIver said talks are progressing each day and a settlement would also help in terms of them acquiring any companies since the debt market is closed and would require some sort of share deal. If Sportingbet were to be acquired, McIver said a settlement would provide clarity for a company and if he were in their position, he would rather see it settled than not settled. Sportingbet was recently valued at 341 million pounds at an investor day for analysts and institutional investors.