Betcorp Sells To Bodog
Australian online betting company Betcorp Ltd. said on Monday it would sell its gaming operations to Costa Rica's Bodog Entertainment Group SA  for us$9 million, exiting the business following a U.S. government decision to ban online gambling.

Betcorp said last week it had suspended its U.S. operations, which made up over 85 percent of its revenues, after U.S. President George W. Bush signed legislation making it illegal to accept wagers over the Internet, or for credit card companies to process payments to online gaming firms.

The company said it had discussed whether its non-U.S. business could be profitable, but decided it did not have the access to funds necessary to invest in the non-U.S. business.

Betcorp said possible extra-territorial application of the new U.S. rules, which clamps down on financial transaction processing, had driven its decision.

"Had the group's gaming operations been closed down, the board estimates that the cost of severance and closure would have been approximately us$6 million," Betcorp said in a statement.

Bodog will pay us$3 million on completion for Betcorp's operations and infrastructure in Antigua and Toronto, and the balance of us$6 million will be paid in four equal quarterly statements in the 12 months following completion, Betcorp said.

Bodog has operation in Costa Rica.

"In addition, the purchaser will be assuming the net current liabilities of the gaming operations of us$2 million, implying an enterprise value of us$11 million," it said.

Betcorp's shares had fallen more than 70 percent since the U.S. Congress passed the law. They closed on Friday at 41 Australian cents.

Earlier this month Calvin Ayre, the billionaire founder of Bodog.com, told Reuters he expected to emerge unscathed from the U.S. clampdown.

"We're confident that we've structured our business in such a way that we'll have no problems adapting," he said.