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Australia fends off net gambler
E-finance: special report
Charlotte Denny
Thursday June 1, 2000
A crackdown on gambling in Australia has scuppered plans by the British online betting firm Gaming Internet to take over Australian firm Consolidated Gaming Corp.
Gaming Internet's managing director, Ian Ryden, said: "We will not be proceeding with the proposed offer as we no longer believe that it would be in the best interests of our shareholders."
The company announced on April 27 that it planned to bid around £16.7m for CGC.
CGC said the decision had been made in light of the Australian government's announcement last week that it plans to impose a 12-month moratorium on new interactive gaming licences to stem the industry.
Australia has one of the world's highest rates of gambling and the government fears easy access to betting sites on home computers might add to the estimated 200,000 problem gamblers in the country.
"Gaming Inc is of the view that there has been a change in circumstances since the announcement of their proposed takeover bid," CGC said in a statement to the Australian stock exchange.
Australia's federal government is considering banning internet gambling altogether but some of the state governments are resisting such a move.
Under the Australian constitution, licensing of gambling activities is a state, not a federal responsibility and states earn considerable revenues from taxing the activity.
The Tasmanian and Australian Capital Territory governments have issued seven new licences in recent weeks, pre-empting legislation in the national parliament to impose the moratorium.
Gaming Internet said it was pursuing a number of other "exciting" possibilities.
E-finance: special report
Charlotte Denny
Thursday June 1, 2000
A crackdown on gambling in Australia has scuppered plans by the British online betting firm Gaming Internet to take over Australian firm Consolidated Gaming Corp.
Gaming Internet's managing director, Ian Ryden, said: "We will not be proceeding with the proposed offer as we no longer believe that it would be in the best interests of our shareholders."
The company announced on April 27 that it planned to bid around £16.7m for CGC.
CGC said the decision had been made in light of the Australian government's announcement last week that it plans to impose a 12-month moratorium on new interactive gaming licences to stem the industry.
Australia has one of the world's highest rates of gambling and the government fears easy access to betting sites on home computers might add to the estimated 200,000 problem gamblers in the country.
"Gaming Inc is of the view that there has been a change in circumstances since the announcement of their proposed takeover bid," CGC said in a statement to the Australian stock exchange.
Australia's federal government is considering banning internet gambling altogether but some of the state governments are resisting such a move.
Under the Australian constitution, licensing of gambling activities is a state, not a federal responsibility and states earn considerable revenues from taxing the activity.
The Tasmanian and Australian Capital Territory governments have issued seven new licences in recent weeks, pre-empting legislation in the national parliament to impose the moratorium.
Gaming Internet said it was pursuing a number of other "exciting" possibilities.