Tough times for L&G

Embattled online gambling group Leisure and Gaming has announced that it is to sell its Betshop subsidiary, which includes Betshop.com, Betshop.gr and Betshop Italia.com in addition to land retail betting shops in Italy and Cyprus.
L&G has been suffering from cash flow difficulties which resulted in trading on the AIM exchange being suspended in May this year .
Thanks to a Euro 300 000 loan facility, the company has enough steam to keep going for another two months, which should be sufficient time to effect a sale, it said in a statement this week.
The World Cup football betting in June and July provided little relief, because L&G had to limit its risk of betting losses due to a weak cash position, which resulted in a net win below that anticipated.
The company recorded gross gaming revenues of Euro 34.7 million for Q2/2010 with net win of Euro 4.4 million, down 15 percent on the previous year. Gross profit declined a worrying 50 percent to Euro 600 000.

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