Online Casino Group Announces Liquadation - 11-21-06

November 21 - Aim-listed online gambling group Fairground Gaming is the latest victim of the Unlawful Internet Prohibition Bill. The group announced that it is to go into liquidation following the sale of its online casino businesses, and its shareholders will receive a cash payment...

The cash payment is estimated at of around 21.5p per share.

The statement said the company had decided that after it stopped taking business from US customers in its casino and poker activities, the optimal course of action was to dispose of its gaming operations and infrastructure.

Its Spin Palace business is to be sold back to its original vendor, Seahouses (presumably the company behind the old Palace Group), for a total consideration of £11.1m, consisting of a cash payment of £5.1m and the effective cancellation of all Seahouses' holding of shares and warrants in Fairground.

Evan Hoff, chief executive of Fairground Gaming said, 'The closure of our US-facing activity and the impact of that legislation on the listed company environment continues to be deeply felt, with our business now only marginally profitable.'

On completion, the board says it intends to liquidate Fairground and to distribute the cash balance to the remaining non-Seahouses shareholders as a return of capital.

It remains to be seen if the online casinos owned by the Palace Group, acquired by FairGround Gaming this year, will again welcome USA based players. Many American online casino fans will certainly hope so. The Palace Group withdrew from the US market because of the public responsibilities Fairground, its holding company. (Read our Palace Group Review.)

Visit our USA online casinos section.

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