After a disappointing press release this morning preceded by mass emails to its clients, Bet on Sports has announced that it will be closing their doors. Recent news reports suggested that BOS was not capable of paying players because funds were unreachable.
An Associated Press news release published yesterday on Yahoo News stated “…because of the judge’s order on July 17, some payment processors, have stopped doing business with BetOnSports.” AP News interviewed an unnamed BOS executive who stated, “BetOnSports has no way to transfer the bulk of the pending wagers or deposits to gamblers.”
Today’s shareholder statement infers that the book’s ability to pay players depends on future earnings and “the Company’s ability to persuade banks and cash processors to release its funds.” It is painfully obvious that they don’t have the money to pay out all clients that they owe.
The manner in which BetOnSports handled the US District Court indictment has been scrutinized by everyone familiar with the situation. Sportsbook operators and industry analysts speculate that BOS overreacted to the affect the indictment would have on the company’s public stock value. BetOnSports Plc is believed to have ceased operating in order to freeze share prices. This left financial processors with no choice but to follow with a suspension on merchant transfers. Now that the sportsbook has announced it will close and does not have all player funds, the finger pointing has ensued.
Those that have funds in the BOS family of books, including popular places MVP Sportsbook and Millennium probably will not get paid. It really is a shame and a black eye for the online gambling industry that a public traded company like BOS could have been run so poorly and handled this manner so horribly.
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