BetonSports Announces Closings

11 August 2006

The Board of Directors of BETonSPORTS today announced that given the temporary restraining order and the related indictment issued by the United States District Court for the Eastern District of Missouri, shutting down its U.S.-facing operations in Costa Rica and Antigua is the company's only viable option.

BoS spokesman Kevin Smith said the company told 800 employees in Costa Rica and Antigua yesterday that they would be losing their jobs. He said the company planned to refocus its business on other parts of the world, particularly Asia.

The Directors outlined in a prepared statement a three-point plan for the closing of the two operations, which included finally addressing the biggest concern of all: whether and when account holders would get their money back.

According to the plan, BoS will cease its operations in Costa Rica and Antigua as soon as possible; it will pay any liabilities to staff and creditors in an orderly manner and it will repay balances due to U.S. customers in an orderly manner.

Smith said the employees will not leave immediately. It will be a gradual exit and the company will pay them within 90 days, he said.

BoS Directors, however, said paying the employees and the account holders will depend upon the company's ability to persuade banks and payment processors, some of which have stopped doing business with BoS, to release its funds. It also will depend on the company's ability to benefit from its assets and operations outside Costa Rica and Antigua and to earn sufficient profits from operations which are not U.S.-facing.

The company said it is taking steps to ensure it is not knowingly accepting wagers from U.S. customers.

BetonSports has not yet indicated when, if ever, it intends to resume trading of its shares on London's Alternative Investment Market. About 20 percent of the company's business comes from non-American markets.

Emily Swoboda is the senior staff writer at IGamingNews. She lives in St. Louis, Mo.