DISMAL PICTURE FOR BETONSPORTS CREDITORS

14 December 2007

It's looking increasingly unlikely that owed employees outside Antigua will be paid


Formerly Costa Rican based employees of the now defunct online gambling group BetonSports, which fell victim to the US Department of Justice last year (see previous InfoPowa reports) received discouraging news regarding their severance pay this week - and it must be hoped that players are not in for similar disappointment.

When BetonSports was bundled out of its primarily American business by the US authorities on allegations of illegal gambling, the return of monies to US players was an important requirement, but it appears likely that there will be problems in accomplishing this.

The Antiguan government, which had a licensing interest in the debacle, took control of Antiguan-connected elements in the sad affair through the offshore gaming division of the Financial Services Regulatory Commission.

But this week, former BetonSports staffers who were based in Costa Rica were turned away when clarity was requested on payment of their severance packages. And Costa Rican labour officialdom may be a bad bet, too as BetonSports has effectively ceased to exist and apparently has very limited assets.

The Costa Rican enquirers at the Antiguan FSRC were referred to a UK-based receivership company called Vantis, with the explanation that this company had been appointed as receivers to liquidate the assets of BetonSports plc and BoS (Antigua) Ltd.

But when Vantis was contacted, although the organisation confirmed that it has been appointed as Receivers-Managers in the (Antiguan) elements of the BoS matter, it had bad news to impart:

"I refer to your recent enquiry to the Director of Offshore Gaming and write to advise that on 20th September 2007 Nigel Hamilton-Smith and Peter Wastell of Vantis were appointed Receiver-Managers of BoS (Antigua) Limited, a subsidiary of BETonSPORTS PLC which is also in Liquidation under our stewardship.

"BoS (Antigua) Limited is a company registered in Antigua and Barbuda, and was the operating company within the BETonSPORTS group responsible for the individual gaming contracts and betting transactions with the players/customers primarily in the United States of America.

"The appointment as Receiver-Managers was made by the Financial Services Regulatory Commission of Antigua and Barbuda ("FSRC"), under the International Business Corporations Act in that jurisdiction.

"As Receiver-Managers under Antiguan law, our duties are primarily to collect in the various assets of the company, and distribute those funds to the creditors of the company.

"We are advised that your contract of employment would have been with BoS Costa Rica Limited and we have not been appointed to deal with affairs of that company.

"Accordingly we cannot assist you any further in this matter."

Delving a little deeper into the recent BoS developments, it appears that the Antiguans did announce the appointment of Vantis Business Recovery Services. The FSRC Gaming Division website carries a statement released on October 18 which informed that the appointment of Vantis was agreed on September 20 this year. Hamilton-Smith and Wastell are partners in the firm, who were also appointed to act as Liquidators of BETonSPORTS PLC, the parent company in the United Kingdom, on 16 May 2007, and Liquidators of three other subsidiary companies in the group on 15 August 2007.

The statement emphasises that BoS (Antigua) Limited has been under the complete control of the FSRC since November 2006, pursuant to an order of the Antiguan High Court which remains in effect.

Vantis is an AIM listed accounting, business and tax advisory group.

InfoPowa has requested a comment from the Antiguan government on the timescale for payment of owed US players and the remedies of unpaid employees outside the ambit of the FSRC. When we went to press no response had been received.

Online Casino News courtesy of InfoPowa