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Enic eyes online gambling
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July 21, 1999: 11:40 a.m. ET
U.K. leisure group confirms interest in offshore Internet gambling venture
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LONDON (CNNfn) - British leisure investment company Enic confirmed it is close to clinching a deal giving it a stake in a nascent off-shore Internet bookmaker.
The London-based company, which has stakes in a number of European soccer clubs as well as hotel and restaurant interests, identified its potential partner as offshore bookmaker Victor Chandler.
One of Enic's major backers is multibillionaire Joe Lewis, Britain's richest man.
"Following press speculation today relating to a possible minority investment in the Victor Chandler online business, Enic confirms that its board is in discussions which are expected to lead a formal announcement being made at the appropriate time," the company said.
A source close to the discussion confirmed to CNNfn.com that Enic is ready to pay 5 million pounds for a 25 percent stake in the Gilbraltar-based company's online gambling business.
Chandler already offers telephone betting services to the U.K. from the British colony located on the southern tip of Spain. The company exploits Gibraltar's status as a tax haven to avoid U.K. government gambling duties, currently 9 percent.
Traditional bookmakers recognize the competitive threat this relatively new form of gambling represents, and a move onto the Internet will only make the process easier. Industry representatives Tuesday lobbied the U.K. Treasury in an attempt to cut the levy to 5.25 percent to help them compete with off-shore based gambling.
If the government doesn't take notice, the industry is threatening to move off-shore itself.
Chandler's plans certainly are making waves with the establishment. "We're taking this threat very seriously," a spokesman for Hilton Group told Reuters. Hilton Group owns Britain's biggest chain of bookmakers, Ladbrokes,
Enic's stock soared 17.5 percent in London, while Hilton Group was down 1.3 percent and rival Stanley Leisure was off 0.5 percent. 
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Hilton Group
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