Sportingbet Chairman Quits Job, Allowed to Leave US
Sportingbet's Chairman Peter Dicks quit his job with the online bookmaker on Thursday, within minutes of a New York City court ruling that he could leave the United States, sending its shares up 25 percent.
Dicks left the criminal court after a 10-minute hearing. He was given back his passport and made no comment but is expected to return home soon. "His intention is to return to the UK shortly," a source familiar with the situation said.
The company issued a brief statement in London saying it had accepted Dicks immediate departure with great reluctance and later said New York Governor George Pataki's office had withdrawn a governor's warrant necessary to transfer Dicks to the state of Louisiana.
Sportingbet's shares rose 10 percent early on amid speculation Dicks might not be extradited to Louisiana to face charges of violating the state's laws against online gambling. News of the court ruling sent them up another 15 percent to close at 192 pence.
Dicks had appeared in court to face charges of "gambling by computer" and was allowed to return to Britain on the condition that he return to New York on Sept. 28 for a hearing on his extradition to Louisiana.
"People feel that this is a more pragmatic approach to gaming firms and is a bit less negative for the company. But the stock is still a long way off from where it was a few months ago. This is still a sector with remarkably little visibility," one dealer said following Dicks's court appearance.
Sportingbet said Dicks had left to concentrate on personal matters and that a new independent non-executive chairman would be appointed in due course.
Dicks's arrest last week at JFK airport in New York followed that in July of David Carruthers, who was then chief executive of BETonSPORTS Plc, by U.S. federal authorities on racketeering charges.
The arrest of Dicks added to fears of a U.S. crackdown on the online gambling industry and wiped over $1.5 billion off the stock market value of the UK-listed sector last Thursday.
"No-one is much the wiser as to what will happen until the September 28 hearing," said a spokesman for an online gaming company who declined to be named.
Investors have been looking for insight into whether Dicks's arrest was linked to Sportingbet's sports betting operations, or whether it also covered other online gambling activities like poker and casino.
Dicks left the criminal court after a 10-minute hearing. He was given back his passport and made no comment but is expected to return home soon. "His intention is to return to the UK shortly," a source familiar with the situation said.
The company issued a brief statement in London saying it had accepted Dicks immediate departure with great reluctance and later said New York Governor George Pataki's office had withdrawn a governor's warrant necessary to transfer Dicks to the state of Louisiana.
Sportingbet's shares rose 10 percent early on amid speculation Dicks might not be extradited to Louisiana to face charges of violating the state's laws against online gambling. News of the court ruling sent them up another 15 percent to close at 192 pence.
Dicks had appeared in court to face charges of "gambling by computer" and was allowed to return to Britain on the condition that he return to New York on Sept. 28 for a hearing on his extradition to Louisiana.
"People feel that this is a more pragmatic approach to gaming firms and is a bit less negative for the company. But the stock is still a long way off from where it was a few months ago. This is still a sector with remarkably little visibility," one dealer said following Dicks's court appearance.
Sportingbet said Dicks had left to concentrate on personal matters and that a new independent non-executive chairman would be appointed in due course.
Dicks's arrest last week at JFK airport in New York followed that in July of David Carruthers, who was then chief executive of BETonSPORTS Plc, by U.S. federal authorities on racketeering charges.
The arrest of Dicks added to fears of a U.S. crackdown on the online gambling industry and wiped over $1.5 billion off the stock market value of the UK-listed sector last Thursday.
"No-one is much the wiser as to what will happen until the September 28 hearing," said a spokesman for an online gaming company who declined to be named.
Investors have been looking for insight into whether Dicks's arrest was linked to Sportingbet's sports betting operations, or whether it also covered other online gambling activities like poker and casino.
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