(Click Here for the Latest Online Poker News Stories)
Copyright © 2006 Guardian News and
Media Limited
HEADLINE: £20m jackpot for Paradise Poker's
three founders
Author: Simon Bowers
Body:
Three Canadian founders of Sportingbet's Paradise Poker
business yesterday shared a payout worth more than £20m
after operating profits reached a milestone.
The payout was triggered after Paradise Poker achieved an operating
profit contribution of $150m (£79m) in the two years since
it was acquired by Sportingbet. The milestone was reached shortly
before US legislators passed new anti-gambling laws last month,
sparking an exodus of operators from America - until then the
largest online betting market in the world.
Sportingbet responded by closing its Paradise Poker operations
in the US, a move that wiped 80% of its poker
revenues overnight. The website is now expected to generate an
operating profit of about £10m a year. Last year the figure
from the website had been about £60m.
The Paradise payout was made to Bonaire, a British Virgin Islands
company, believed to be controlled by three Canadian technology
experts. They remain Sportingbet's second largest shareholder,
with 11.5%, but their identities have been kept hidden. Bonaire
was paid an initial amount of £102m in cash and 56.6m shares
when it sold Paradise to Sportingbet.
In another piece of good timing for the Canadians, Bonaire raised
£65m by selling 17m shares earlier this year when Sportingbet
stock was trading at 385p. In addition, Paradise founders are
entitled to a further 10% of all operating profits in the current
financial year.
Sportingbet last month wrote down two-thirds of the £186m
goodwill value of the Paradise acquisition. Chief executive Andy
McIver conceded further writedowns may have to follow.
Absolute
Poker Bonus
Related: See American
Poker Rooms
Article
downloaded from the World Wide Web on Nov 8, 2006:
http://business.guardian.co.uk/story/
0,,1941065,00.html?gusrc=rss&feed=24 |
(Click Here for the Latest Online Poker News Stories)
|