Cubswin
11-15-2004, 10:07 PM
Sporting Options goes under as storm brews link (http://www.egrmagazine.com/cgi-bin/articles.pl?section=3&id=477&action=display)
Sporting Options, the UK-based betting exchange firm, has entered into administration with rumours circulating of a scandal ready to break over the use of money in customer accounts.
All betting activity on the site has been suspended, but industry insiders suggest there could potentially be a huge financial black hole at the firm.
And sources have revealed to eGaming Review that the firm may have been trading using funds allocated to customer accounts.
It is believed that a substantial amount of Sporting Option's customers' deposits could be at risk as a result of the firm's actions.
Menzies Corporate Restructuring were appointed as administrators to Sporting Options on 15 November.
And all customers with queries over payment issues are currently being directed to the adminsistrator's office.
Shortly before the site entered into administration it was thrown out of the betting exchange industry’s trade association BETA for breaking its code of practice.
Rob Hartnett, managing director of BETA member Betdaq, said he had sympathy for those who may be adversely affected, but was keen to assure customers that BETDAQ remains in rude good health.
"BETDAQ customer funds have always been fully ring-fenced from the daily operating expenses of the exchange," Hartnett said.
BETA's other member Betfair also sought to reassure its customers that money placed in its accounts was safe.
"Betfair will always have 100 per cent of its customers’ money available for them to withdraw whenever they want it,” Stephen Hill, Betfair's chief executive, said.
“All client funds are held on trust in ring-fenced client accounts with the Royal Bank of Scotland and are completely segregated from company funds," he added.
UK sportsbook Blue Square pulled out of a £4m deal to acquire Sporting Options earlier this year at the due diligence phase.
But the sportsbook, owned by the Rank Group, did not confirm at the time the reason behind cancelling the deal.
There will be more on this breaking story as the week goes on.
Sporting Options, the UK-based betting exchange firm, has entered into administration with rumours circulating of a scandal ready to break over the use of money in customer accounts.
All betting activity on the site has been suspended, but industry insiders suggest there could potentially be a huge financial black hole at the firm.
And sources have revealed to eGaming Review that the firm may have been trading using funds allocated to customer accounts.
It is believed that a substantial amount of Sporting Option's customers' deposits could be at risk as a result of the firm's actions.
Menzies Corporate Restructuring were appointed as administrators to Sporting Options on 15 November.
And all customers with queries over payment issues are currently being directed to the adminsistrator's office.
Shortly before the site entered into administration it was thrown out of the betting exchange industry’s trade association BETA for breaking its code of practice.
Rob Hartnett, managing director of BETA member Betdaq, said he had sympathy for those who may be adversely affected, but was keen to assure customers that BETDAQ remains in rude good health.
"BETDAQ customer funds have always been fully ring-fenced from the daily operating expenses of the exchange," Hartnett said.
BETA's other member Betfair also sought to reassure its customers that money placed in its accounts was safe.
"Betfair will always have 100 per cent of its customers’ money available for them to withdraw whenever they want it,” Stephen Hill, Betfair's chief executive, said.
“All client funds are held on trust in ring-fenced client accounts with the Royal Bank of Scotland and are completely segregated from company funds," he added.
UK sportsbook Blue Square pulled out of a £4m deal to acquire Sporting Options earlier this year at the due diligence phase.
But the sportsbook, owned by the Rank Group, did not confirm at the time the reason behind cancelling the deal.
There will be more on this breaking story as the week goes on.