Trading in Betbrokers, a betting brokerage and online gambling operator in London, was suspended this morning after the company announced Friday that its subsidiary, Betbrokers Ltd., was placed into administration.
The news comes as little surprise following a June announcement that the company was unlikely to meet market expectations for the 2008 fiscal year.
Betbrokers said then that "a lack of funds in the clearing house account has severely restricted the amount of bets that can be taken."
Moreover, Wayne Lochner, the company's chief executive, said the lack of funding has had a "detrimental impact" on the company's United Kingdom operation.
"Currently the Company is unable to fully ascertain the effect of this on the Company's financial position," it said in a note to the London Stock Exchange Friday. "Further announcements will be made as soon as practicable."
Since August 2007, shares in Betbrokers have fallen a precipitous 95 percent.
Mr. Lochner did not immediately respond to an e-mail seeking comment.