BetOnSports Plc Agrees to Permanent Injunction Shutting It Out of the US Market

Effective today, BetonSports Plc has agreed to a federal court order for a permanent injunction with the U.S. Attorney General's Office. Under the terms of the injunction, the Company is barred from:

1. continuing to operate an illegal gambling business through Internet web sites and telephone services;
2. continuing to operate any web site that offers sports betting or transmit betting information in the United States;
3. continuing to operate any telephone service that offers sports betting or transmits betting information in the United States;
4. soliciting and accepting wagers on sports and sporting events from persons in the United States;
5. transmitting wagering information using interstate and international wire communications facilities within the United States;
6. transmitting funds solicited from persons in the United States for the purpose of placing wagers on sports and sporting events to the Company and its agents outside the United States;
7. advertising any gambling activity which is in violation of United States law; and
8. transferring funds to, from, or within the United States in violation of United States law.

The Company must:

1. inform its telephone services providers that it is ceasing illegal operations in the United States, and that it will no longer accept wagers, or allow the transmission of betting information through interstate and foreign communication facilities in the U.S.;
2. return to U.S. gamblers, the balance of funds in its possession as of July 17, 2006, received from such persons for the purpose of opening a sports betting wagering account;
3. set up a toll free telephone service for each web site it operated that was accessible from the United States, to provide refund information to U.S. gamblers;
4. relinquish rights to and cancel several of its U.S. trademarks;
5. post, on each web site it operates that is accessible from the United States, a message on its primary access page that it does not accept wagers from persons in the U.S. and that it is a violation of U.S. law to transmit sports wagers or betting information to its website from the U.S.; and
6. provide to the U.S. Attorney General, within seven days, a list of all financial institutions at which it maintains or has maintained accounts in the past five years and free and reasonable access to, and use of, its business records related to its Internet gambling scheme so that the U.S. may prepare for and conduct its litigation and investigation against the Company and the other defendants named in the Indictment.

In support of the injunction, the submission from the U.S. stated what is truly the crux of the U.S. concern regarding online gambling enterprises operating offshore - that the harm to the U.S. and to several States, including loss in tax revenue and subversion of State and federal regulatory programs designed to regulate gambling, is substantial.

The agreement for the permanent injunction does not affect the criminal case still pending against several BetOnSports employees, including David Carruthers, former Chief Executive Officer of the Company, who remains under house arrest in Missouri. Carruthers and others at the Company are facing 22 counts of fraud, tax evasion and racketeering. The trial is scheduled for January 2007.