Sportingbet has come under fire in several countries around the world due to its internet gambling presence. Recently, the attacks came in Turkey, where two employees of the UK-based company have been held in custody for what iGamingNews called “organized crime, money laundering and tax evasion.” The company, which is traded on the London Stock Exchange under the symbol “SBT,” finished down 1% to ₤31.500 at the end of trading on Monday despite news that one of the two detained employees had been released back to the United Kingdom. He was not charged in the matter. The second employee still remains in custody.
In May, both members of Sportingbet who were held in Turkey filed appeals. On Monday, one was sent back to the UK without even being charged. A press release distributed by the company to the London Stock Exchange noted that, despite the latest release, a handful of “non-Sportingbet employees remain in custody in connection with this matter, some of whom are understood to be connected to the [Sportingbet’s] former marketing partner for the Turkish market, Maslin Properties Limited.” Maslin helped solicit Turkish customers prior to March, 2007, when the company was purchased by Sportingbet.
The company’s presence in Turkey has diminished rapidly as a result of the threatening legal climate. The decline in revenue from the second quarter to the third quarter (which ended in April) was steep. During the second quarter, Sportingbet derived 26% of its revenue from residents of Turkey. In the third quarter, that figure was nearly shaved in half; it dropped to just 14%. Since March 1st, 2008, revenue from Turkey has made up just 9% of Sportingbet’s revenue, according to its press release.
As far as the other employee of Sportingbet who is in custody, the company stated that it “continues to offer him support and is seeking clarification about when and what charges, if any, will be bought.” According to Reuters, the arrests were made in conjunction with Sportingbet’s site Superbahis. Sportingbet also owns and operates popular online poker site Paradise Poker. In Spanish markets, the company is represented by Miapuesta. In addition, Sportingbet.au and Sportingbet.gr market to the Australian and Greek markets, respectively.
Sportingbet was founded by Mark Blandford in February, 1998. The website was launched eight months later and quickly expanded. In January of 2001, it was listed on the London Stock Exchange’s Alternative Investment Market. Sportingbet launched Sportsbook.com to appeal to the U.S. market later that summer. Its German and Turkish language casinos were launched in 2003. Sportingbet purchased Paradise Poker in 2004, but was forced to shut down its U.S. operations shortly after the passage of the Unlawful Internet Gambling Enforcement Act in October, 2006. It purchased Superbahis one year ago. Major stockholders include Fidelity (14.99% of shares), DBS Advisors (14.06% of shares), Investment Holdings Limited (11.42% of shares), Prudential (5.04% of shares), and ING Bank NZ (3.47% of shares).
Sportingbet has no plans to pull out of the Turkish market entirely, at least in the foreseeable future. iGaming notes that its main rival, Bwin, has already exited the market.
