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US net gambling arrests fail to spook Sky City
 Message was posted: 01:29 Sep 10th, 2006     
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US net gambling arrests fail to spook Sky City
11 September 2006
By TOM PULLAR-STRECKER AND REUTERS

Sky City and Christchurch Casino wouldn't comment last week on whether they were concerned their board members risked being caught up in a crackdown on the global online gaming industry if they travelled to the United States.

US authorities have detained two internet gaming executives in recent weeks, sparking share price falls that wiped more than US$1.5 billion off the market value of the sector.

British online bookmaker Sportingbet said its chairman, Peter Dicks, had been detained by US authorities on Thursday. BetOnSports chief executive David Carruthers was arrested in Texas in July and charged with racketeering.

A London analyst says Mr Dicks' arrest shows the US Justice Department is "going after online gaming companies by arresting their board members".

Laws banning online gambling are pending in the US, but the Justice Department reportedly used the 1963 Wire Act to claim it was already illegal to engage in "commercial gambling across state and international borders".

Christchurch Casino runs a suite of online gaming sites from Bermuda, including kiwicasino.com, through wholly-owned subsidiary Christchurch Casino E-Gaming Investments. These accept bets from US and other citizens, though there are protections to prevent New Zealanders from setting up accounts.

Spokesman Simon Carter was unable to contact board members on Friday. A spokeswoman for Sky City, which has two seats on the board of Christchurch Casino, says the company has not issued any travel advisories to its board.


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