Bodog Buys Betcorp for $9 Million

Betcorp is now out of the betting industry.

The Australian company announced that it accepted a deal to be sold to Bodog for $9 million. The deal still needs approval from its shareholders, who will receive the money once the deal goes through.

In addition to the money, Bodog also assumes around $2 million in Betcorp debt. Betcorp estimated that it would cost the company $6 million in severance and closure if it was simply closed.

"This purchase, which speaks directly to the current strength of our business, is the first of many possible international acquisition targets under consideration," says Calvin Ayre, the founder of Bodog. "We couldn't be better positioned to build upon our current success and growth and to continue our aggressive push towards international expansion into markets such as Europe and Asia."

Betcorp's Board of Directors concluded that the company would be able to profit without the business of U.S. customers by either launching a major marketing blitz or purchasing an existing non-US facing company. But Betcorp doesn't have enough cash on hand or access to the funds to do either one of these things.

Click here to read about the Congressional legislation that shook up the online gambling world, and click here for CardPlayer.com's page dedicated to legislative issues.

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