Lasseters in trouble

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MORE JOB CUTS DUE TO U.S. SITUATION - NOW IT'S AUSTRALIA

Lasseters cuts staff after law changes

Australian online gaming operator Lasseters Corporation Ltd is effectively reducing its staff by more than half.

In a statement to the Australian Stock Exchange, Lasseters said the board had undertaken a review of its operations and strategies following the passing of the Unlawful Internet Gambling Enforcement Act in the United States on October 13.

"Redundancies have been offered effectively reducing our staff from 40 to 19," the company said. "Our customer care operations in Brisbane have been closed and integrated into our 24/7 MIS Operations facility in Alice Springs."

Lasseters said the loss of 70 percent of the company's global revenues, startup costs associated with the sportsbook and redundancy costs will cause a loss before interest, tax, depreciation and amortisation of about $1.5 million for the year ending June 30, 2007.

"Impairment testing of the intangible assets may further impact the loss in the financial year," the operator said.

Lasseters, which holds its annual general meeting this week, said its board would continue to review the operations and strategies of the business.

Last month the company said the Unlawful Internet Gambling Enforcement Act signed by US President George W Bush would eliminate around half of the world's estimated $US10 billion online gaming industry.