Kerzner International Ltd., one of the two big league players in online gaming, announced Wednesday it is abandoning Internet gambling operations.
The company expressed doubts about the prospects for the profitability of Internet gaming in the short to medium term.
Isle of Man awarded both MGM Mirage and Kerzner (then Sun International) licenses to operate Internet casinos in September 2001.
Bahamas-based Kerzner began operating its online casino in December 2001 and MGM Mirage began operating in September.
Despite having a casino brand to market the online gaming site, Kerzner management indicated that the cost of running a highly regulated site put it at a competitive disadvantage to the vast majority of Internet gaming sites that were not strictly regulated.
“We believe there could be implications for Keluaran Hk MGM Mirage following Kerzner International’s announcement today that it is discontinuing its online gaming operations,” UBS Warburg analyst Robin Farley said.