Call for clear gaming regulation

Sportingbet is frustrated by the lack of consistency

Internet gaming firm Sportingbet has called for greater consistency in the regulation of the online gaming sector.

Its comments came as it reported a 54% rise in operating profits to £2m for the three months to 31 January.

However, the figures excluded its former US business, which Sportingbet sold for $1 last year after a clampdown on online gaming in the US.

Separately, the Guardian reported that gaming rival Partygaming closed its website to French customers last week.

Partygaming, which releases its full-year results on Thursday, declined to comment on the report.

On Tuesday, gaming firm 888 Holdings said its former chief executive John Anderson was to be interviewed by French authorities.

French authorities are reported to have asked for interviews with about 20 online firms. The move has raised fears that online gaming firms could face a crackdown in the French market.

'Market distortions'

The sector is still coming to terms with the decision made last year by US lawmakers to make it illegal for banks and credit card firms to process gaming payments.

With diverse government policies ranging from licensing and regulation to blatant protectionism now in place, the need for clarification has never been greater Sportingbet

The move saw the value of online gaming firms plummet as many companies derived the bulk of their income from the US.

Sportingbet sold its US operation for $1 in October last year, just before the new US laws were passed.

Unveiling its latest set of results, Sportingbet called for greater consistency and harmonisation of the regulations governing the industry in different markets.

"There is little sign that the market distortions which now exist across various global markets show any signs of being resolved," the firm said.

"With diverse government policies ranging from licensing and regulation to blatant protectionism now in place, the need for clarification has never been greater.

"Sadly, there is little sign that authorities such as the EU have the appetite to address the issue at present."

Good trading

Including its former US business, Sportingbet reported an operating loss of £243.9m for the six months to 31 January - which included a £252m charge for the US exit.

The loss compared with a £43.1m profit for the same period a year earlier.

Chief executive Andrew McIver said Sportingbet had not been called for a meeting with French authorities and that the market there accounted for less than 2% of the firm's business.

Mr McIver said he was pleased with the results in what had been a "difficult and turbulent" time for the industry, and that trading in the latest quarter had started well.