LASSETERS SHUTDOWN CONFIRMED (Update)

10 October 2008

Parent company suffered A$15.5 million loss last financial year

The closure of Lasseters Online Casino this week (see previous InfoPowa report) has been confirmed by Australian newspaper "The Age" in its business section.

Reporting on the demise of the online company after nine years of operations, the report reveals that shares have been in suspension for almost a month following its A$15.5 million loss last financial year, to allow the company to plead for a capital injection from its parent company, Lasseters International.

In the results, the auditors declared there was "inherent uncertainty regarding continuation as a going concern".

With Lasseters International yet to decide whether to invest more money, the listed Lasseters Corporation said it was no longer taking bets on its three casino websites, Lasseters Online, AusVegas and Lasseters Euro.

"A review of the viability of the online casino operations was made and the board of Lasseters is of the view that the ability of the online casino to turn around is very remote, despite continuous support from the parent company over the last two years," the company said in a statement.

"The online casino has suffered continuous losses and faces numerous constraints, resulting in the company's online casino not being able to remain competitive."

Lasseters took its last online casino bets this week.

The company has previously lamented the impact of the Unlawful Internet Gambling Enforcement Act, a 2006 law in the US that disrupts financial transactions with online gambling companies and has caused significant industry damage.

The only online Lasseters division still operating is the online sports betting operation, Lasseters Sportsbook.

Online Casino News courtesy of InfoPowa