World Gaming today said it had gone into administration as it became the casualty of the US crackdown on online gambling.
Shares in the firm, which had relied on the US for more than 95% of its customers, were suspended on Monday due to “a fundamental uncertainty over its ability to continue trading”.
And today, administrators were called in and chief executive Daniel Moran and chief financial officer David Naismith resigned along with sales and marketing director Jonathan Moss and non-executive director Michael Cumming.
In a statement World Gaming said: “Following the announcement released by the company on Monday relating to the suspension of trading, the directors of World Gaming announce that they have now determined that they are unable to continue the company’s US facing operations should the Unlawful Gambling Enforcement Act be signed by the US President.
“This decision follows discussions with all key parties and after receiving appropriate legal advice.
“These operations contributed the overwhelming majority of the company’s revenues for the year to 2006.”
World Gaming was worst hit by the new laws due to its customer base and its shares tumbled 92% last week.
Shares recovered slightly on Monday but were suspended at 8.5p – valuing the firm at just £7.7m (€11.4m) compared with the £56.6m (€84m) Sportingbet was planning to bid earlier this month. Sportingbet pulled out of takeover talks following approval of the Bill.
Andrew Andronikou and Peter Kubik of UHY Hacker Young have been appointed joint administrators.