BUSH REPEALS 30% WITHHOLDING TAX LAW
The Board of betinternet.com plc (“betinternet”), the global on-line gaming group, is pleased to note that the United States American Jobs Creation Act of 2004, which includes a provision to remove the 30% withholding tax charged to foreigners on winnings on United States races, was signed into law on 22 October 2004 by President Bush. This is viewed by the Board as an extremely positive development for the betinternet business going forward.
In a recent strategy update the Board indicated its intention to develop further its Pari-Mutuel business believing it to provide the best opportunity for shareholder return. The elimination of the 30% withholding tax charged to non US citizens on winnings on US races will open up significant global strategic opportunities for the Pari-Mutuel business.
The Board considers that betinternet is well placed to take advantage of this change in US Tax Law. Its established Super Hub in the Isle of Man connects to more than eighty international tracks daily, using industry standard global protocols, and has developed multi currency solutions for both host tracks and betting companies. This makes it an ideal service provider for US Tracks wishing to globalise their product.
Paul Doona, Managing Director, said: “The passing of this Bill opens up the opportunity for host tracks and content providers to globalise their product. As a result of the excellent regulatory framework within which we operate and the technical infrastructure and expertise available to us, we are in a perfect position to help them achieve this expansion.”