WINNING  
MOMENTS
ANNUAL REPORT AND ACCOUNTS 
2007-2008 COMMENT ARY 
Highlights  1
About us
 Access 2
 Trust 4
 Value 6
 Security 8
 Diversity 10
Group Chief Executive’s Statement 12
Chairman’s Statement 15
Business Review 16
Board of Directors 22
FINANCIAL ST ATEMENTS
Financial Review 24
Corporate Social Responsibility Statement 26
Corporate Governance Statement 28
Directors’ Report 32
Remuneration Report 34
Regulatory Developments 40
Report of the Independent Auditor to the Members of Sportingbet Plc 43
RESUL TS
Consolidated Income Statement 44
Consolidated Balance Sheet 45
Consolidated Cash Flow Statement 46
Group Statement of Recognised Income and Expense 47
Notes to the Financial Statements 48
Parent Company Independent Auditor’s Report 80
Parent Company Balance Sheet 81
Notes to the Parent Company Financial Statements 82
Notice of Meeting 88
Shareholders’ Information 94
Financial Summary 95
Corporate Directory 96
CONTENTS ANNUAL REPORT AND ACCOUNTS 2007-2008 1
HIGHLIGHTS
Net gaming revenue growth of 23% to £147.0m •	
Operating profit* more than trebled to £22.7m •	
Restructuring completed resulting in improved operating profit margin** of 15.4% •	
(2007 restated: 4.1%)
Sports betting net gaming revenue growth of 45% driven by increased product •	
range and strong performance in Europe and Australia
Strategic review of marketing partners completed with Spanish and Bulgarian •	
marketing brought in-house
Solid start to new financial year: revenue growth in excess of 30% in first two •	
months
Net cash*** of £28.6m •	
*Adjusted to exclude exceptional items, share option charge and amortisation
**Adjusted operating profit as a percentage of net gaming revenue
*** Net of long term debt and customer liabilities
KEY HIGHLIGHTS
FINANCIAL HIGHLIGHTS (from continuing operations)
Amounts Wagered 1,364.2 1,096.4 +24
Net Gaming Revenue 147.0 119.4 +23
EBITDA* 29.2 11.9 +145
Adjusted Operating Profit* 22.7 4.9 +363
Group Operating Loss (1.2) (33.6) 
Diluted EPS (p) (0.9) (7.7) 
Adjusted Diluted EPS* (p) 3.8 1.1 +245
Net cash*** 28.6 16.3 +75
2008 
£m
2007  
restated 
£m
 
% WINNING MOMENTS 2
KAREN BET ON EFFICIENT AT 12/1 
WITH SPORTINGBET AUSTRALIA’S 
TELEPHONE BETTING SERVICE.
ANNUAL REPORT AND ACCOUNTS 2007-2008
3
WHO WON?
KAREN JAMESON
MELBOURNE, AUSTRALIA
To help improve its global reach, 
Sportingbet opened a new 
Customer Care Centre in Dublin 
in April 2007. This centre, along 
with the call centre in Darwin, 
is dedicated to providing the 
highest level of customer service, 
in each of the local languages of 
its customers, 24 hours a day.  
Customers can use a range of 
different channels to get in touch, 
including email, live chat  
and telephone.
So, whether a customer is based in 
Bulgaria or Australia, they can call 
or email Sportingbet’s customer 
service at any time of the day or 
night. On average the Customer 
Care Centre receives around 
90,000 contacts a month – 25,000 
calls, 32,000 live chats, and 33,000 
emails – placing it well above 
industry standards.
ACCESS
SPORTS FANS CAN BET WHENEVER AND WHEREVER THEY WANT .
EFFICIENT 
MAHLER
VS
2007 MELBOURNE CUP WINNING MOMENTS 4
STEPHAN PLACED ONE OF 70,133 
BETS T AKEN BY SPORTINGBET ON 
THE CHAMPIONS LEAGUE FINAL.
ANNUAL REPORT AND ACCOUNTS 2007-2008
5
WHO WON?
STEPHAN KOVACZ
BUDAPEST, HUNGARY
In May of this year a Sportingbet 
customer placed €27 on the 
Super 7’s slot machine game on 
Sportingbet’s casino site, and in 
return won just shy of €1,000,000. 
Sportingbet takes pride in its 
customers and celebrates their 
achievements, putting each 
month’s big winners up on its 
website. Such transparency and 
honesty is not limited to just 
winners, but is evident in all of 
Sportingbet’s financial reporting 
and corporate governance 
procedures.
As a company listed on the London 
Stock Exchange since 2001, and 
now 10 years old, its customers 
and stakeholders alike trust 
Sportingbet for its experience, 
reputation and honesty.
TRUST
MAN UTD 
CHELSEA
VS
2008 CHAMPIONS 
LEAGUE FINAL
WITH MORE AND MORE WINNERS EVERY DAY , SPORTS FANS 
WORLDWIDE TRUST SPORTINGBET TO BE THE WORLD’S BEST 
SPORTS BETTING SITE. WINNING MOMENTS 6
ALIST AIR COMPARED THE ODDS 
ACROSS THE INDUSTRY ON 
NADAL TO WIN. AND THEN HE BET 
WITH SPORTINGBET .
ANNUAL REPORT AND ACCOUNTS 2007-2008
WHO WON?
ALIST AIR CLARKE
LONDON, UNITED KINGDOM
Sportingbet is a trusted and valued 
name within the gaming industry. 
Sportingbet’s in-running betting 
product ‘in:play’ combined with 
a world class trading team place 
Sportingbet at the forefront of its 
industry, and it aims to offer some 
of the most competitive odds in  
the market.  
VALUE
Sportingbet relies on its ability to 
offer daily, monthly and annual 
promotions tailored to the 
specific needs of each customer. 
Customers know that they can rely 
on Sportingbet to deliver excellent 
value on every bet.
FEDERER 
NADAL
VS
2008 WIMBLEDON 
MENS FINAL
DETERMINED TO OFFER THE MOST COMPETITIVE ODDS IN THE 
MARKET , SPORTINGBET IS COMMITTED TO ENSURING VALUE FOR 
ALL ITS CUSTOMERS.
7 WINNING MOMENTS 8 ANNUAL REPORT AND ACCOUNTS 2007-2008
WHO WON?
JAVIER MARTINEZ
MADRID, SPAIN
JAVIER BET ON CSKA MOSCOW 
SECURE IN THE KNOWLEDGE 
THAT HIS PERSONAL DET AILS ARE 
COMPLETEL Y PROTECTED  
AT SPORTINGBET .
Data protection, anti-money 
laundering and fraud are high on 
the agenda for the Sportingbet 
team. Sportingbet prides itself on 
using the latest technology and 
state of the art systems to combat 
credit card fraud, identity theft 
and underage play. Sportingbet 
promises all its customers a private 
and hassle-free online experience.   
SECURITY 
With a new and improved 
registration process, released in 
May 2008, Sportingbet is able to 
track every customer’s account at 
all times, ensuring their money is 
safe and secure whilst complying 
with the requirements of all our 
regulatory authorities.
MACCABI ELITE 
   CSKA MOSCOW
VS
2008 EUROLEAGUE 
 FINAL    
SECURE AND ROBUST PAYMENTS SYSTEMS ARE BUIL T INTO ALL 
SPORTINGBET TRANSACTIONS.
9 WINNING MOMENTS 10 ANNUAL REPORT AND ACCOUNTS 2007-2008
WHO WON?
KATIE PLACED HER BET ON 
PERPIGNAN FROM HER HOME IN 
MONTREAL ON SPORTINGBET’S 
CANADIAN WEBSITE.
      KATIE SANDERSON
MONTREAL, CANADA
Sportingbet strives to keep pace 
with the ever-changing world 
of online gaming and an ever-
demanding customer. Sportingbet 
is constantly looking for the next 
sporting moment or opportunity to 
increase its customers’ interest.
In 2008, Sportingbet covered a 
huge variety of sports seeking 
out some of the less well known 
games, and offering a spread of 
live in-running betting from the 
Champions League down to youth 
matches in Poland, the Czech 
Republic and Sweden. 
DIVERSITY 
In addition, Sportingbet offers 
multi-table poker tournaments and 
an ever expanding list of casino and 
virtual games, making Sportingbet 
the online gaming retailer of choice.
MONTPELLIER 
PERPIGNAN
VS
FRENCH TOP 14
RUGBY UNION
EVERY DAY UP TO 14,000 BETTING OPPORTUNITIES ARE OFFERED 
IN 22 LANGUAGES TO CUSTOMERS FROM AROUND THE GLOBE.
11 WINNING MOMENTS 12 ANNUAL REPORT AND ACCOUNTS 2007-2008 13
Sports betting remains the core 
focus of the Group and accounts 
for approximately 61% of Group 
net gaming revenue (“NGR”)   
(2007: 52%). The systems and 
experience of the European sports 
trading team are amongst the 
best in the industry and this is 
demonstrated by a market leading 
sports margin. As the European 
online sports betting market 
continues to grow, the Board 
believes that the Group’s strength 
in this key operating area will  
stand it in good stead to capitalise 
on the enormous potential of this 
industry. In Australia, Sportingbet 
is the clear market leading 
independent bookmaker.  
The European and Australian 
operations have grown significantly 
in the past year, in terms of new 
customers, yields from those 
customers and profitability.  
In addition, major steps have been 
taken in the development of the 
Group’s product offering, through 
an increased number of betting 
markets, enhancements to the 
in-running betting products and, in 
Australia, significant development 
of the region’s CRM tools.  
Group Restructuring
The last stages of the Group’s post 
US restructuring and the European 
business operational move to the 
Channel Islands were completed 
during the year. All European 
management, finance and risk 
management functions are now 
conducted in Guernsey.  
Exceptional costs were incurred 
during the year amounting to 
£12.0m. These related to costs 
associated with the move of the 
European operational base to the 
Channel Islands, redundancy  
costs relating to the restructuring  
of the Group’s head office  
function and the set-up and 
termination costs relating to 
the cessation of certain Group 
marketing partner contracts.
   GROUP CHIEF EXECUTIVE’S 
ST ATEMENT 
Andrew McIver
Group Chief Executive
Sportingbet’s operations are 
focused on Europe and Australia.  
The European operation is based 
in the Channel Islands, operating 
under a licence provided by 
the Alderney Gambling Control 
Commission. This is supported 
by an operational centre in Dublin 
providing customer service and 
administrative support, together 
with an IT function located in 
London. In addition, the European 
business includes a licensed 
Italian operation, based in Rome.  
The Group’s Australian division is 
located in Darwin, operating under 
a licence from the Northern  
Territory Government.   
Both operational divisions are 
supported by a head office  
function based in London. In total 
the Group employs approximately 
460 people. WINNING MOMENTS 14 ANNUAL REPORT AND ACCOUNTS 2007-2008 15
   CHAIRMAN’S ST ATEMENT 
Peter Dicks
Chairman and Non-Executive Director
Sportingbet has made tremendous 
progress during the past year, 
consolidating its leading position 
in the online sports gaming market 
by entering new territories and 
offering attractive new products 
to our customers. Operating profit 
has more than tripled to £22.7m 
during the year, only two years 
after withdrawing from the US 
market, which is testament to both 
the business model and the team 
within Sportingbet. Importantly, 
other key performance indicators 
such as amounts wagered,  
net gaming revenue, growth and 
yields per customer all showed 
significant improvements.
Regulation, of course, continues to 
be a significant issue in the industry 
but we are cautiously optimistic 
regarding the recent overall trend 
of European Governments taking 
a more practical approach to 
the industry and away from the 
protection of domestic monopolies.  
In the United States, the Group 
continues to be in talks with the 
US Department of Justice to seek 
clarification of the position of the 
US authorities with respect to the 
Group’s previous activities and 
whether a mutually acceptable 
resolution is possible. At this stage 
there is nothing further to report.
A significant amount has been 
achieved over the past 12 months.  
The restructuring of the European 
operation and Group Head Office 
is now complete and the revised 
structure has led to a more than 
three-fold increase in operating 
profit. These actions, whilst difficult 
for the business and its employees 
now leaves us well positioned to 
capitalise on the strong position 
we have in many of our markets. 
In addition, the completion of 
our marketing partner review has 
resulted in us bringing in-house a 
number of these operations, which 
will further enhance our ability to 
maximise our growth potential.
During the first two months of 
the new financial year the Group 
continued to drive growth out of 
its main Southern and Eastern 
European and Australian markets.  
In Spain, now wholly owned by the 
Group, NGR is up 20% year on 
year.  In Greece, which continues 
to be run by the marketing partner, 
revenues are up 120% year on 
year.  Across Eastern Europe, the 
main markets of Bulgaria, Poland, 
Hungary and the Czech Republic 
continue to perform strongly, 
exhibiting growth of 68% over 
last year.  Elsewhere, the Group 
is building on its nascent Latin 
American business and has a 
licence pending in South Africa for 
the launch of a licensed sportsbook 
in early 2009.
The internet gaming industry has 
seen another year of outstanding 
growth and I firmly believe that 
Sportingbet’s business model 
with its combination of strength 
of product offering, world leading 
sportsbook and high quality 
management team places the 
Group in an ideal position to 
capitalise on this growth. As yet  
we have not seen any effect from 
the global financial crisis nor 
from the anticipated economic 
slowdown expected in various 
economies. The Group’s financial 
position remains strong and I 
am pleased to report that an 
encouraging start has been made 
to the current financial year.  WINNING MOMENTS 16 ANNUAL REPORT AND ACCOUNTS 2007-2008 17
To support this, the Group has 
invested in its customer proposition 
by enhancing service levels for 
existing customers through its 
dedicated service centre in Dublin, 
including one-to-one support 
for more high value customers. 
The Group’s marketing has also 
been reviewed, with attention on 
efficiency and the recruitment of 
profitable players.
The European business generates 
its revenues from a broad 
geographical base. Southern 
Europe continued to be the key 
geographical stronghold of the 
Group with Spain and Greece 
growing at a combined 22%, 
representing 17% and 14% of 
Group net gaming revenue (‘NGR’) 
respectively. Turkey grew strongly 
in the first half of the year before 
the Group switched its  investment 
to other areas to reduce its 
dependence on this region. As a 
result, Turkey accounted for 17% 
of the Group’s NGR in the year. 
Since February 2008 this region 
has accounted for 8% of Group 
NGR and has continued at this rate 
through the first two months of the 
new financial year.
Historic investment in emerging 
Eastern European markets is 
now beginning to demonstrate 
real returns in these high growth 
markets. Poland, Hungary, the 
Czech Republic and Bulgaria are 
key markets in this region, and  
grew in aggregate by 79% year 
on year to generate 13% of Group 
NGR. In addition, investment 
in the Latin American market 
has successfully established 
Sportingbet in the region.
Europe’s casino offering, which 
accounted for 24% of the Group’s 
NGR, performed well through the 
year. The number of casino bets 
placed rose by 23% to 175.4m 
(2007: 142.6m) at an average bet 
size of £4.73 (2007: £5.06). The 
casino margin percentage was 
3.4% (2007: 3.2%). The slight 
improvement in the margin reflects 
the change in product mix within 
the portfolio over the last year, 
towards higher margin slot machine 
play, over and above table games 
such as blackjack and roulette. 
This follows our increased 
investment in the Group’s slot  
type product offering.
   BUSINESS REVIEW
EUROPE
The European business continued 
to demonstrate strong growth 
throughout the year. In particular, 
the Group’s core sports betting 
product saw a 6% increase in the 
number of customers to 464,523 
(2007: 436,779). The number of bets 
placed rose by 14% to 51.5m  
(2007: 45.3m) at a rate of 111 per 
active customer per year (2007: 104 
bets), with an average bet size of 
£14.98 (2007: £13.26). As a result 
of both increased frequency of bets 
and a marginally higher bet size, 
plus a stronger margin percentage, 
yield per customer increased by 
36% from £124 to £169.
The improvement in the yield 
described above was, in part, 
driven by the strength of the 
Group’s in-running betting product, 
branded ‘in:play’, allowing 
customers to bet throughout 
the game on a wide variety of 
outcomes. Consequently in:play 
grew 71% year on year and 
now accounts for 45% of sports 
turnover within Europe, building 
on the Group’s aim of providing its 
customers with an entertainment 
based destination rather than a 
mere transactional website.  
In response to increasing customer 
demand, the Group is working 
towards offering a round-the-
clock in-running betting service 
on an ever wider variety of events, 
irrespective of an event’s location 
or time zone.
In addition to the further 
development of in:play, the Group 
has invested heavily in its systems 
and processes to allow it to offer 
many more betting markets than 
previously with little additional 
personnel input. This allowed 
the Group to focus on liability 
management in order to maximise 
the profit from the range of markets 
being offered and led to the sports 
margin percentage increasing to 
10.1% (2007: 9.0%). As sports 
betting remains the Group’s core 
product, further investment will 
continue to be made in this area.
The Group continues to focus on 
yields from its existing customer 
base as well as seeking to attract 
new high value customers. WINNING MOMENTS 18 ANNUAL REPORT AND ACCOUNTS 2007-2008 19
In July 2008, Sportingbet brought 
in-house the operation and 
management of miapuesta.com, 
the Group’s Spanish domain. 
The contract termination payment 
and the cost of setting up the  
in-house operation, has resulted 
in an exceptional charge of £4.7m 
during the period. This move 
provides the Group with operational 
and strategic control over its  
largest market. 
Finally, in October 2008 the Group 
signed a significant extension to  
the contracts with its Greek 
marketing partner.
This partnership has to 
date established Greece as 
Sportingbet’s second largest 
market. This new agreement 
provides the partner with the ability 
to market the Sportingbet brand, 
and its own secondary brand 
vistabet.com, across Greece as well 
as the new markets of Romania, 
Croatia, Slovenia and certain other 
Balkan regions. In light of the highly 
successful historic performance of 
the Greek domains, this extension 
commits a key supplier for the 
medium term whilst increasing the 
geographical footprint of the Group.
The restructuring of these 
marketing arrangements has 
an impact on the structure of 
the Group’s Income Statement.  
Commissions paid to the partners 
are classified as a marketing 
expense. Once these businesses 
are brought in-house, this 
commission will cease to be paid; 
however these savings will be 
largely offset by the Group’s own 
marketing in these regions, an 
increase in the level of reported 
bonuses and additional staff costs.
During the year the European 
region generated poker rake of 
£23.7m (2007: £29.0m), pre bonus 
deductions, down 18.3% year on 
year. Poker now accounts for just 
15% of the Group’s NGR, down 
from 23% in the prior year. Poker 
remains difficult as the environment 
has become increasingly 
competitive with large US-focused 
poker companies using significant 
cash flow and their high liquidity to 
capture the European market. 
MARKETING PARTNER REVIEW
Over the last two years, the Board 
has reviewed its arrangements with 
its European marketing partners.  
These marketing partnerships 
were established a number of 
years ago and provide a variety of 
locally focused support including 
marketing, customer services and 
in some circumstances, payment 
processing, in return for a share 
of the gaming revenue generated 
from those regions. Whilst all of 
these contracts are similar in their 
operation, they each have different 
contractual obligations for both 
Sportingbet and the marketing 
partner. These relationships 
flourished during the early part of 
their tenure providing Sportingbet 
with strong market positions in 
Spain, Turkey, Greece and Bulgaria.  
As these markets have matured 
the benefits from some of the 
arrangements have diminished and 
the Group concluded that some 
should be brought in-house whilst 
others expanded. 
Last year, the Group purchased the 
business and assets of its Turkish 
marketing partner, as well as 
terminating the contract with  
its much smaller Scandinavia  
based partner.
This year, the Board has continued 
this strategic initiative, resulting 
in the purchase of its Bulgarian 
marketing partner in March 2008.
In addition, the contract with its 
Hungarian marketing partner 
was not renewed, resulting in the 
operation of this domain being 
brought in-house in April 2008. WINNING MOMENTS 20 ANNUAL REPORT AND ACCOUNTS 2007-2008 21
BOARD OF 
DIRECTORS
The final element of the Group’s 
restructuring was a review of its 
head office function. Peter Dicks 
returned to the Board as Chairman 
and Non-Executive Director, having 
previously held the position from 
January 2000 to September 2006.  
In addition, Jim Wilkinson joined the 
Board as Group Finance Director 
having previously held the same 
position at Johnson Service Group 
plc and Informa Group Plc. As part 
of this review it was concluded 
that the role of Chief Operating 
Officer was no longer required and 
as a result Dave Hobday, Chief 
Operating Officer, left the Group in 
May 2008.
TRADING OUTLOOK
The Group will continue to 
concentrate on developing its 
sports offering and the imminent 
introduction of live streaming of 
sport to the Group’s customer base 
aims to drive further in-running 
betting volumes. We will continue 
to increase the breadth of markets 
offered, in line with the demands 
of our geographically diverse 
customer base whilst cross  
selling additional revenue streams 
to our customers. Our strong 
balance sheet stands us in good 
stead during these times of 
financial uncertainty. 
Whilst there is no evidence of 
having been impacted by the recent 
turmoil in the financial sector, the 
Group will continue to monitor 
customer performance statistics 
closely. However, the new financial 
year has started well with NGR 
growth in excess of 30% in the first 
two months. As such the Board 
remains cautiously optimistic of  
the outcome for the current 
financial year.
AUSTRALIA
Sportingbet Australia had an 
excellent year with NGR up 55% 
making the business the fourth 
largest territory in the Group, 
accounting for 13% of total 
NGR. The growth was driven by 
a 34% increase in the number 
of customers from 23,094 to 
31,032. The increase in NGR was 
particularly pleasing as there was 
an unprecedented outbreak of 
equine influenza in August 2007 
which curtailed horse racing, the 
Group’s main product in Australia, 
in both Queensland and New South 
Wales, for much of the first half of 
the year.  Despite the interruption, 
the business grew by significant 
volumes to stand clearly as 
Australia’s number one 
independent bookmaker.  
The NGR percentage for the region, 
after betting taxes and product 
fees, was 3.7% (2007: 2.9%), 
amounting to gross gaming revenue 
of £23.5m (2007: £15.8m).
The relatively low margin compared 
to the rest of the Group is due 
to a combination of the betting 
market in general in Australia and 
the large proportion of the Group’s 
business which derives from the 
telephone rather than the internet. 
Typically, internet customers are 
more frequent bettors and generate 
a higher margin, but have a much 
lower average stake size.  
Sportingbet’s Australian business 
operates under a Northern 
Territories licence, which only 
permits sports betting.
Recent developments in the 
States of Victoria and New South 
Wales have removed restrictions 
preventing bookmakers licensed 
out-of-state from advertising within 
these States. As Australia’s largest 
independent bookmaker these 
developments are welcomed and 
will further assist the promotion of 
the business.
The Australian betting industry has 
recently been subject to additional 
charges introduced by State based 
horse racing boards, in particular, 
in 2006 Racing Victoria Limited 
introduced a product charge for 
the approval to publish race cards 
or races held within the State of 
Victoria. A similar turnover based 
fee was introduced by the State of 
New South Wales on 1 September 
2008. Whilst an additional cost  
to the business, these fees have 
been fully factored into the Group’s  
profit expectations. WINNING MOMENTS 22 ANNUAL REPORT AND ACCOUNTS 2007-2008 23
Brian Harris, aged 62, joined 
Sportingbet as a Non-Executive 
Director in January 2003.  
The founder and senior partner 
of a London law firm with an 
international clientele, he has  
acted for foreign governments,  
multi-national corporations, national 
airlines, and prominent individuals 
and companies involved in 
international sports. He is actively 
involved in sporting charity work  
for the disabled.
Nigel Payne, aged 48, is a  
Non-Executive Director.  
He joined Sportingbet Plc in May 
2000 as Group Finance Director. 
Nigel was Group Chief Executive 
between 2001 and 2006.  
Prior to joining Sportingbet, Nigel 
was the Group Finance Director 
of Polestar Magazines, Europe’s 
largest magazine printer, and has 
held directorships at Scottish 
& Newcastle and Brann Direct 
Marketing. Nigel is also a Director 
of Mucky Pups Childcare Limited, 
Bettor Logic Limited, Golfbidder 
Limited and Redweb Security 
(UK) Limited. Nigel qualified as a 
Chartered Accountant in 1984. 
Sean O’Connor
Senior Independent  
Non-Executive Director
Brian Harris
Non-Executive Director 
Nigel Payne 
Non-Executive Director
Member of the Audit Committee
Member of the Nomination  
Committee (Chairman)
Member of the Remuneration Committee
Member of the Social Responsibility 
Committee
Member of the Nomination Committee
Member of the Remuneration Committee
Member of the Social Responsibility 
Committee (Chairman)
Member of the Audit Committee (Chairman)
Member of the Nomination Committee
BOARD OF DIRECTORS 
Peter Dicks, aged 65, joined the 
Board of Sportingbet as Chairman 
in January 2000.  He resigned 
in September 2006 as a result 
of actions taken by the State of 
Louisiana with regard to online 
gaming activities in the United 
States.  He re-joined the Board 
as Chairman and Non-Executive 
Director in February 2008.  Peter 
started his career as a stockbroker 
and was co-founder of Abingworth 
Plc in 1973. Peter is a director 
of a number of quoted and 
unquoted companies including 
Graphite Enterprise Trust, Polar 
Capital Technology Trust, Private 
Equity Investor, Mears Group and 
Standard MicroSystems a U.S. 
NASDAQ quoted Company.  
Peter is also a Director of Daniel 
Stewart & Company.
Andrew McIver
Group Chief Executive
Jim Wilkinson
Group Finance Director
Peter Dicks
Chairman & Non-Executive Director 
Member of the Audit Committee
Member of the Remuneration  
Committee (Chairman)
Member of the Nomination Committee
Sean O’Connor, aged 59, joined 
Sportingbet as a Non-Executive 
Director in 2000. He is the 
Chairman of Cape PLC, Premium 
Appliance Brands and Springboard 
Urban and was acting Chairman of 
Sportingbet PLC from September 
2006 - February 2008. He was 
previously Chairman of the Stoves 
Group PLC and of MediaKey Plc 
and is currently a Director of several 
public and private companies 
including the Graphite Enterprise 
Trust plc, Escape Studios and  
Crow TV.
Andrew McIver, aged 45, formerly 
Group Finance Director, took 
over as Group Chief Executive in 
October 2006. Andrew qualified as 
a Chartered Accountant with Arthur 
Andersen. Following two years in 
the Corporate Finance department 
at Dresdner Kleinwort Wasserstein, 
he held senior finance positions at 
Signet Group Plc, Ladbrokes Group 
Plc and British Telecom’s Internet 
division. He was Director of Finance 
with House of Fraser Plc for four 
years before joining Sportingbet in 
December 2001.
Jim Wilkinson, aged 42, joined 
Sportingbet Plc as Group Finance 
Director in February 2008, prior to 
which he held the same position 
at Johnson Services Group plc 
between 2004 and 2007. As a 
Chartered Accountant, Jim qualified 
with Touche Ross before moving to 
Informa Group Plc in 1994 to hold 
a series of management positions, 
most significantly, Group Finance 
Director from 1998 - 2004. WINNING MOMENTS 24 ANNUAL REPORT AND ACCOUNTS 2007-2008 25
   FINANCIAL REVIEW
This is the first year under which 
Sportingbet has adopted International 
Financial Reporting Standards (“IFRSs”) 
as the basis to report its financial results, 
as opposed to UK GAAP .  As a result of 
the implementation of IFRS, terminology 
used in the presentation of the financial 
results has changed. Precise definitions of 
the new terms used are included in Note 
1 on Accounting Policies. A reconciliation 
between the results under IFRS and UK 
GAAP is set out in Note 27.
T rading summary
Amounts wagered (previously disclosed as 
turnover) for the year ended 31 July 2008 
were £1,364.2m (2007: £1,096.4m), earning 
net gaming revenue “NGR” (previously 
disclosed as gross profit) of £147.0m  
(2007: £119.4m). 
Amounts wagered on sports betting in 
Europe grew by 27.5% to £764.9m (2007: 
£599.8m), earning NGR of £71.1m (2007: 
£49.7m). Casino and gaming contributed 
a further £36.8m, and poker £20.0m, to 
both amounts wagered and NGR (2007: 
£29.4m and £27.9m). Amounts wagered on 
Australian sports betting grew by 23.5% to 
£542.5m (2007: £439.3m), earning NGR of 
£19.1m (2007: £12.4m).  
As a percentage of amounts wagered, the 
European and Australian sports NGR were 
9.3% and 3.5% respectively (2007: 8.3% 
and 2.8%). However, amounts wagered 
and NGR are stated after a deduction for 
customer bonuses of £13.5m (2007: £7.9m). 
Without the bonus deduction the equivalent 
numbers would have been 10.1% and 3.7% 
(2007: 9.0% and 2.9%). The increase in 
customer bonuses from £7.9m to £13.5m 
during the year reflects the bringing in-house 
of certain marketing partners together with 
an increased focus on customer retention 
and driving customer yields. 
Costs (excluding exceptional items, share 
option charge and amortisation) in the  
year were £124.3m (2007 restated: 
£114.5m), accounting for 84.6% of NGR 
(2007 restated: 95.9%).
Operating profit (before exceptional items, 
share option charge and amortisation) for 
the year is marginally better than expected 
at £22.7m (2007 restated: £4.9m). The 
Group benefited from the inclusion in 
the year of Euro 2008, which contributed 
£20.2m of additional amounts wagered, 
generating £2.0m of NGR. Historically these 
tournaments tend to deliver a lower than 
average margin for bookmakers. Euro 2008, 
however delivered approximately £1.0m 
more of NGR than our original expectations.
Earnings before interest, tax, depreciation 
and amortisation (excluding exceptional 
items and share option charge) was up 
145.4% to £29.2m (2007 restated: £11.9m).
Operating loss after charging exceptional 
items of £12.0m (2007: £26.8m), share 
option charge of £8.0m (2007: £9.9m) and 
amortisation of other intangible assets of 
£3.9m (2007: £1.8m), was £1.2m (2007 
restated: 33.6m).
Finance income
Finance income comprised interest 
receivable of £0.8m (2007: £1.2m) and 
interest payable on bank loans of £0.4m 
(2007: £0.2m).
Earnings per share
Basic earnings per share before exceptional 
items, share option charge and amortisation 
was 4.3p (2007 restated: 1.2p). Diluted 
earnings per share before exceptional items, 
share option charge and amortisation was 
3.8p (2007 restated: 1.1p).
Cash Flow
During the year ended 31 July 2008, the 
Group generated cash from operating 
activities of £33.0m (2007 restated: £0.1m).  
As at 31 July 2008, the Group had £49.4m 
(2007 restated: £34.5m) of cash and liquid 
resources on its balance sheet, of which 
£15.2m (2007: £12.9m) related to  
customer liabilities.
Gross financial liabilities amounted to 
£10.1m (2007: £5.4m) which comprised 
£5.6m (2007: £5.3m) bank loans secured on 
residential properties in the Channel Islands, 
£4.5m (2007: £nil) contingent consideration 
following the acquisition of the business and 
assets of Belmond International Limited and 
£nil (2007: £0.1m) contingent consideration 
relating to the acquisition of Sportingbet 
Italia S.p.A.
T reasury management
The Group’s treasury function provides 
a centralised service for the provision of 
finance and the management and control 
of liquidity, foreign exchange and interest 
rates. The function operates as a cost centre 
and manages the Group’s treasury exposure 
to reduce risk in accordance with policies 
approved by the Board.
It is not the policy of the Group to trade 
in or enter into speculative transactions. 
Authorities, procedures and reporting 
responsibilities are documented and 
regularly reviewed. 
Due to the international nature of its core 
activities, the Group’s reported profits, net 
assets and cash flows are all affected by 
foreign exchange rate movements. 
Operations are financed by a mixture of 
retained profits, bank borrowings and long-
term loans. In addition, various financial 
instruments, such as trade receivables 
and trade payables, arise directly from the 
Group’s operations.
Certain customers in the Australian region 
are allowed to place bets on credit. The 
Group’s policy in respect of credit risk is to 
require appropriate credit checks are made 
on potential customers before bets are 
placed and credit limits set accordingly. WINNING MOMENTS 26 ANNUAL REPORT AND ACCOUNTS 2007-2008 27
Overview 
Since its formation in 1998 Sportingbet 
has always sought to exhibit responsible 
and ethical practices. In its start up period, 
the Company was conscious of consumer 
scepticism over the trustworthiness of 
internet bookmaking, with many operators 
being unknown and unseen. As the 
Company grew its business, it increasingly 
confirmed its position as a straight-dealing 
and dependable leader in this  
new marketplace.
The Company’s culture was formalised 
in 2000 in a series of written statements 
entitled Customer Charter and Code of 
Conduct. Since then these statements 
have been available for viewing on the 
Sportingbet website and continue to 
illustrate the Company’s social responsibility 
to its customers, to its shareholders and to 
the governments of markets in which  
it operates. 
The Company’s objective is to provide a 
‘protected entertainment environment’ 
in which its customer care programmes 
give responsible adults the confidence of 
knowing that their money is safe, whilst 
providing the Company with the confidence 
that all reasonable steps are being taken to 
protect the vulnerable.
Social Responsibility Committee 
The Committee is chaired by  
Non-Executive Director, Brian Harris, and  
its other members are Sean O’Connor,  
Senior Independent Non-Executive Director, 
and the Company’s General Counsel, Daniel 
Talisman, who also acts as the Committee’s 
Secretary. The Committee meets at least 
four times a year and in fact met eight times 
during the last financial year. The internal 
Audit and Compliance Manager and the 
Group Head of Human Resources attend its 
meetings and the Group Chief Executive is 
appraised of the Committee’s work at least 
twice in the course of the year. 
The Committee is responsible for reviewing 
the Company’s policies on corporate social 
responsibility and stimulating Group-wide 
best practice on matters including age 
verification, fraud, money laundering, 
responsible gaming, self-exclusion  
and privacy.
Appropriate recommendations are made to 
the Company’s Board. Terms of Reference 
can be viewed on www.sportingbetplc.com 
and are available in writing on request.
   CORPORATE SOCIAL 
RESPONSIBILITY 
Customers 
As a service business, the core of 
Sportingbet’s policies on social responsibility 
lies in its approach to its customers.  
All operational directors and their brand 
managers are committed to winning and 
retaining the trust and loyalty of  
their users.
The guiding principle behind Sportingbet’s 
policies can be summarised as ‘Know Your 
Customer’. Procedures to achieve this mean 
far more than merely collecting documentary 
evidence of people’s identities. It is about 
understanding their individual requirements, 
appreciating concerns and closely 
researching their patterns of behaviour.
Knowing one’s customers and creating 
profiles of their activities and preferences 
leads to targeted and appropriate marketing 
strategies. This lies at the heart of the 
Company’s Customer Relationship  
Management policies.
The way different customers spend money 
and what they spend it on provides an 
overall understanding of their motivation. 
Happily, for almost all of the Company’s 
customers online gambling is a valued 
entertainment, and Sportingbet’s products, 
promotions and culture make their 
relationship with the Company an  
enjoyable experience.
It is the remaining tiny minority, however, 
who may be potential fraudsters, underage 
gamblers or problem players that result in 
the need for comprehensive systems and 
procedures to protect the Company and, 
often, the customer. Of course, nothing can 
ever be entirely secure against determined 
offenders, but the Company commits much 
time and investment to finding organisational 
and software driven approaches to excluding 
the vulnerable and identifying fraud.
With the advent of multi-player environments 
such as poker, the Company is particularly 
vigilant about the risk of collusion or irregular 
fund movements between participants. 
Systems have been designed to highlight 
unusual or concerning patterns of play.
Employees 
The Board of Sportingbet is of the firm belief 
that the Company’s success is due to the 
quality and commitment of its workforce. 
The Company’s employee management 
priorities, including its remuneration 
strategies, are based on recruiting and 
retaining the best people in the industry 
and on encouraging working practices that 
improve productivity, reduce costs, develop 
talent and give job satisfaction.
Further, the Board recognises the need for 
communication with employees at every 
level. Weekly sales notes and all quarterly 
results announcements are circulated to 
employees and copies of the Annual Report 
and Accounts are made available too.  
The Company is committed to developing 
ongoing communication with all of its 
employees. This is achieved through a 
variety of channels, including the Group’s 
intranet, to ensure that everyone is informed 
of the Group’s progress and recognises the 
key roles that they, as employees, play in 
Sportingbet’s success. Further, the Group is 
committed to a policy of equal opportunity 
in matters relating to employment, training 
and career development of employees and 
is opposed to any form of less favourable 
treatment afforded on the grounds of 
age, disability, sex, marital status, sexual 
orientation, nationality, race or religion.
Trade and charitable 
organisations 
The Company recognises the obligation 
upon the gaming industry to demonstrate 
its commitment to self-regulation. The 
Company is supportive of the role that the 
industry’s trade associations can play in this 
regard and Sportingbet is an active member 
of the Remote Gambling Association (RGA) 
holding a seat on its Executive Committee 
and being represented on various RGA  
sub-committees.
The Company has signed up to the RGA’s 
Codes on Social Responsibility and Age 
Verification, the provisions of which the 
Committee endorses.
Recognising that some customers may 
be affected by gambling dependency, 
the Company has continued to provide 
funding in the UK to RIGT (Responsibility 
in Gambling Trust), being the body which 
supports GamCare. The Company also 
supports charitable organisations that are 
not linked to the online gaming industry. 
For the third year, the Company has 
sponsored the annual tennis tournament 
held at Queen’s Club, London in support 
of the Friends of Israel Sport Centre for 
the Disabled and The Dan Maskell Tennis 
Trust and, following the move of part of the 
Company’s trading team to the Channel 
Islands, the Company has undertaken 
sponsorship of Miss Heather Watson, a 
tennis starlet and Guernsey resident who 
competes on the ITF Junior Circuit. The 
Company also continues to support the 
Bishop Simeon Trust’s work in South Africa 
with communities affected by HIV. WINNING MOMENTS 28 ANNUAL REPORT AND ACCOUNTS 2007-2008 29
   CORPORATE GOVERNANCE 
ST ATEMENT 
Compliance
The Company recognises the importance  
of the principles of good corporate 
governance and the Board is pleased 
to report its continued commitment to 
achieving high standards throughout the 
year. As an AIM listed company,  
Sportingbet is not required to follow the 
provisions of the 2006 FRC Combined 
Code (the ‘Code’) as set out in the 
Financial Services Authority Listing Rules. 
Nonetheless, in so far as it can be applied 
to a company of its nature, the Company 
voluntarily complies with the principles as 
set out in Section 1 of the Code. 
The Board is accountable to the Company’s 
shareholders for good governance and the 
statement set out below describes how the 
principles identified in the Code are applied 
by the Group. 
The Board constitution and 
procedures 
The Company is controlled through the 
Board of Directors which, at the end of the 
financial year, comprised two Executive 
and four Non-Executive Directors. All 
Non-Executive Directors (other than Nigel 
Payne) are considered by the Board to be 
independent of management and free of  
any relationship which could materially 
interfere with the exercise of their 
independent judgement. Given Nigel Payne’s 
previous position as an Executive Director, 
he is not considered to be independent as 
defined by the Code.  However, the Board 
continues to believe that his experience, 
objectivity and in particular, insight into 
the regulatory environment in which the 
Company operates, combine to provide 
a valuable contribution to the strategic 
direction of the Company.
During the year, there were the following 
changes to the constitution of the Board:
On 1 February 2008, and after consultation 
with major shareholders, Peter Dicks  
was appointed Chairman and Director of  
the Company.   
Sean O’Connor therefore resumed his role 
as Senior Independent Non-Executive 
Director.
In addition, Jim Wilkinson was appointed on 
1 February 2008 as Group Finance Director 
of the Company.
On 8 May 2008, Dave Hobday resigned as 
an Executive Director of the Company.
The Chairman is primarily responsible for 
the running of the Board, and ensures 
that all Directors receive sufficient relevant 
information on financial, business and 
corporate issues prior to meetings. The 
Group Chief Executive’s responsibilities 
focus on coordinating the Company’s 
business and implementing Group strategy.  
A formal schedule of matters is reserved 
for consideration by the Board, which met 
eleven times during the year. The Board 
is responsible for overall Group strategy, 
acquisition and investment policy, approval 
of major capital expenditure projects and 
consideration of significant financing 
matters. It reviews the strategic direction of 
individual trading subsidiaries, their codes of 
conduct, their annual budgets, their progress 
towards achievement of these budgets 
and their capital expenditure programmes. 
In addition, the Directors have access to 
the advice and services of the Company 
Secretary and all Directors are able to take 
independent professional advice in the 
furtherance of their duties if necessary.
All new Directors receive a full, formal 
and tailored induction on joining the 
Board as well as training and advice on 
their responsibilities as necessary. All 
Directors, in accordance with the Code, 
submit themselves for re-election at least 
once every three years and new Directors 
are subject to a transparent and rigorous 
appointment process (including submitting 
themselves for re-election at the first annual 
general meeting after their appointment). 
The Company Secretary is responsible for 
ensuring Board processes and procedures 
are appropriately followed and support 
effective governance and decision making. 
Board committees 
The Board delegates clearly defined powers 
to its Audit, Remuneration and Nomination 
Committees whilst the Company’s Social 
Responsibility Committee (SRC), as reported 
on page 26, is responsible for reviewing 
the Company’s policies on corporate social 
responsibility and making appropriate 
recommendations to the Board. The minutes 
of each committee are circulated to and 
reviewed by the Board. 
Audit Committee 
The Audit Committee is chaired by Nigel 
Payne (who has recent and relevant financial 
experience for this role, as indicated on 
page 23). Its other members are Peter Dicks, 
who was appointed to the Committee on 
1 February 2008 and Sean O’Connor who 
was first appointed to the Committee on 30 
January 2001. 
The Company believes that a membership 
of three reflects the size of the business 
(as defined by the Code) going forward. 
Furthermore, the Company recognises that 
it does not comply with provision C.3.1 in 
that not all the members of the Committee 
are Independent Non-Executive Directors 
(as defined by the Code, and as explained 
above). The Board considered that in order 
to ensure the effective working of the 
Committee it was appropriate to appoint 
Nigel Payne as Chairman and Peter Dicks 
as a member of the Committee, and is 
confident of their experience to ensure 
the Committee’s affairs are conducted in 
an impartial and objective manner. The 
Committee’s Secretary is Daniel Talisman, 
the Company Secretary. 
The Audit Committee meets at least twice 
a year (and met four times during the 
last financial year) and normally invites a 
representative of both the auditors and the 
Executive Directors to attend its meetings, 
the latter usually being the Group Finance 
Director. At the end of each meeting 
the auditors are invited to meet with the 
Committee with no Executive or staff 
members present. The Terms of Reference 
of the Committee include monitoring 
the integrity of the financial statements, 
monitoring the internal and external audit 
function and reviewing accounting policies, 
financial controls and financial reporting 
procedures. The Committee also has 
responsibility for reviewing the effectiveness 
of the Group’s internal control and risk 
management systems, described in more 
detail later in this section. During the year, 
the Committee received presentations from 
senior management on the key risks and 
control issues in their respective business 
areas and reviewed risk mitigation plans 
for critical risks. Terms of Reference for the 
Committee can be viewed on the  
Company’s website and are available in 
writing on request. 
Remuneration Committee 
The Remuneration Committee is chaired 
by Peter Dicks, who was appointed to 
the Committee on 1 February 2008. Brian 
Harris and Sean O’Connor are its other 
members. The Committee’s Secretary is 
Daniel Talisman, the Company Secretary. 
The Remuneration Committee meets when 
necessary during the year (and met seven 
times during the last financial year) and 
considers the terms of employment and 
overall remuneration for the Executive 
Directors, including pension rights and any 
compensation payments. The Remuneration 
Committee also recommends and monitors 
the level and structure of remuneration 
of senior management. In particular, the 
Committee makes decisions regarding 
grants or awards under share plans, salaries 
and incentive compensation. Terms of 
Reference for the Committee can be viewed 
on the Company’s website and are available 
in writing on request. 
The remuneration of Non-Executive 
Directors is determined by the  
Executive Directors. 
Nomination Committee 
The Nomination Committee is chaired by 
Sean O’Connor and its other members 
are Peter Dicks, who was appointed on 
1 February 2008, Nigel Payne and Brian 
Harris. The Committee’s Secretary is Daniel 
Talisman, the Company Secretary. The 
Committee sits formally at least twice a 
year (and met three times during the last 
financial year). The Terms of Reference for 
the Committee (including the terms and 
conditions of appointment of Directors) can 
be viewed on the Company’s website and 
are available in writing on request. 
The Committee is responsible for monitoring 
and formally reviewing the performance, 
composition, balance and expertise of the 
Board as a whole and making an appraisal 
of the contribution of individual Directors, 
including a review of their time commitment 
and attendance records. The Committee 
also considers succession planning for 
the Board and Group senior management. 
When necessary the Committee prepares 
a description of the role to be filled and 
engages external consultants to administer 
a detailed search and the generation of 
a shortlist. Any recommendations for 
appointments or replacements are brought 
before the Board. 
During the year, the Committee  
considered the appointment of the new 
Group Finance Director and, following this 
appointment, assessed the composition of 
the Board which it believed to be sufficiently 
strong and diverse for a company of 
Sportingbet’s size. 
Evaluation 
The Board continued its ongoing evaluation 
processes of itself and its committees 
to assess their performance and identify 
areas in which their effectiveness, policies 
and processes might be enhanced. As 
part of this process the Board continues 
to comply with the Institute of Chartered 
Secretaries and Administrators’ Code of 
Good Boardroom Practice. The performance 
of individual Directors has been considered 
by the Chairman and Group Chief Executive 
in discussion with other Non-Executive 
Directors. The Non-Executive Directors 
considered the performance of the 
Chairman, taking into account the views of 
the Executive Directors. 
Communication with investors 
The Group places considerable importance 
on communication with its institutional and 
private shareholders and responds quickly to 
all queries received. There is regular dialogue 
with institutional shareholders as well as 
general presentations after each quarter end 
and the issue of preliminary results. 
All shareholders have at least 20 working 
days’ notice of the Annual General Meeting 
at which all Directors are introduced and 
available for questions. The Executive 
Directors endeavour to meet the Company’s 
larger institutional shareholders at the 
time of the Company’s quarterly results 
announcements and the Senior Independent 
Non-Executive Director, Sean O’Connor is 
available to shareholders throughout  
the year.  WINNING MOMENTS 30 ANNUAL REPORT AND ACCOUNTS 2007-2008 31
Peter Dicks** Board 7* 7
 Audit 1* 1
 Remuneration 3* 3
 Nomination 1 1
Brian Harris Board 11 10
 Remuneration 7 7
 Nomination 3 3
 SRC 8 8
Andrew McIver Board 11 11
Sean O’Connor Board 11 11
 Audit 4 4
 Remuneration 7 7
 Nomination 3 3
 SRC 8 8
Nigel Payne Board 11 11
 Audit 4 4
 Nomination 3 3
Dave Hobday*** Board 8* 8
 SRC 7* 7
Jim Wilkinson**** Board 7* 7
Accountability and Audit 
(a) Internal control 
The Group has complied with provision 
C.2.1 of the Code and the Turnbull Guidance 
for the year ended 31 July 2008 and up to 
the date of approval of the Annual Report 
and Accounts. The Board has ensured that 
there has been an ongoing process for 
identifying, evaluating and managing the 
significant risks faced by the Group.  
This process has been regularly reviewed by 
the Board. 
Whilst acknowledging the overall 
responsibility for the system of internal 
control and for reviewing its effectiveness, 
the Board is aware that the system is 
designed to manage rather than eliminate 
the risk of failure to achieve business 
objectives and can only provide reasonable, 
but not absolute, assurance against material 
misstatement or loss.
The Group’s internal control procedures 
continue to be reviewed, progressively 
developed and formalised to ensure that 
they sufficiently meet the requirements of the 
Group. Executive members of the Board are 
involved daily in all aspects of the business 
and they attend regular management 
meetings at which performance against 
plan and business prospects are reviewed. 
Additionally, the Board seeks to continually 
strengthen the internal control system 
where this is consistent with improving the 
relationship between risk and reward.
Other key features and the processes for 
reviewing effectiveness of the internal 
control system that the Committee have 
applied during the current financial year are 
described as follows: 
Monthly management information, •	
including financial accounts and key 
performance indicators, have been 
defined and are produced on a timely 
basis for review by the Board. 
   CORPORATE GOVERNANCE 
ST ATEMENT 
A detailed formal budgeting process •	
for all Group businesses culminates in 
an annual budget which is reviewed 
and approved by the Board. Results for 
the Group and for its main constituent 
businesses are reported monthly against 
the budget to the Board and revised 
forecasts for the financial year are 
considered each quarter. 
A comprehensive financial and •	
accounting package sets out the 
principles of the minimum standards 
required by the Board for effective 
financial control. This package sets out 
the financial and accounting policies and 
procedures to be applied throughout 
the Group. Compliance with the policies 
and procedures set out in this package 
is reviewed regularly. Formal reports for 
the Board are prepared by the senior 
executives on the operation of those 
elements of the system for which they  
are responsible. 
The Company has clearly defined •	
guidance for capital expenditure. 
These include annual budgets, detailed 
appraisal and review procedures, levels 
of authority and stringent due diligence 
requirements where businesses are  
being acquired.  
During the year, the Committee undertook 
an appointment process in respect of the 
Company’s change in Auditor. Following this 
comprehensive process,  
they recommended to the Board 
appointment of Grant Thornton UK LLP as 
the Group’s new auditors. Their appointment 
was latterly approved by shareholders at the 
Company’s Annual General Meeting on 28 
December 2007.
(b) External Audit 
The Audit Committee meets periodically 
to review the adequacy of the Group’s 
internal control systems, accounting 
policies and compliance with applicable 
accounting standards and to consider 
the appointment of external auditors and 
audit fees. The Group’s auditor is invited to 
attend its meetings. The Audit Committee 
is authorised by the Board to investigate 
any activity within its terms of reference and 
obtain outside legal or other independent 
professional advice as necessary.  
The auditor and individual Board members 
are afforded the opportunity for separate 
meetings with the Audit Committee.  
The Audit Committee consists wholly of 
Non-Executive Directors. 
The award of non-audit work to the auditor 
is subject to pre-clearance by the Audit 
Committee if the fee exceeds specified 
thresholds. As a matter of best practice 
and in accordance with the International 
Standard of Auditing 260, the auditor has 
held discussions with the Audit Committee 
on the subject of auditor independence and 
has confirmed their independence  
in writing. 
Directors’ attendance
Meetings 
attended
Number Possible meetings Director
* maximum number of meetings the Director could attend
** Appointed Chairman and Director on 1 February 2008
*** Resigned as a Director on 8 May 2008
**** Appointed as a Director on 1 February 2008 WINNING MOMENTS 32 ANNUAL REPORT AND ACCOUNTS 2007-2008 33
   DIRECTORS’ REPORT
The Directors submit their Annual Report 
and audited financial statements of the 
Group for the year ended 31 July 2008.
Principal activities 
The principal activities of the Group are the 
operation of interactive licensed betting 
and gaming operations over the internet. 
In Australia only, interactive betting is 
conducted over the internet and telephone. 
Results and dividends 
The results of the Group for the year are 
set out on page 44 and show a loss after 
taxation for the year of £4.3m (2007: 
£315.1m). The Directors do not recommend 
payment of a final dividend. 
Review of the business and 
future developments 
A more detailed review of the business and 
future developments is given in the Group 
Chief Executive Statement on pages 12 to 
14 and the extended Business Review on 
pages 16 to 21.
Directors 
The following Directors have held office 
during the year and subsequently: 
Peter Dicks was appointed as Chairman 
and Non-Executive Director of the 
Company on 1 February 2008, at which 
point Sean O’Connor resumed his role 
as the Company’s Senior Independent 
Non-Executive Director.  Jim Wilkinson 
was appointed as Group Finance Director 
on 1 February 2008. Following the Group’s 
restructuring, the Company announced that 
on 8 May 2008 the role of Chief Operating 
Officer was no longer required. As a result, 
Dave Hobday formally resigned as a Director 
of the Company on 8 May 2008.
Both Peter Dicks and Jim Wilkinson will seek 
re-appointment, and Andrew McIver will 
retire by rotation and seek re-election, all of 
whom being eligible, at this year’s Annual 
General Meeting.
The interests of the Directors in the shares 
of the Company and options for such 
shares were as shown on pages 34 to 39 
both reflecting the year end figures and any 
subsequent changes. No Director has any 
interest in any other Group company. Details 
of the Directors’ remuneration and service 
contracts appears on pages 34 to 39. 
Auditor
The auditor, Grant Thornton UK LLP , is 
willing to continue in office and a resolution 
to re-appoint Grant Thornton UK LLP will  
be proposed at the forthcoming Annual 
General Meeting.
Related party transactions 
Details of transactions with related  
parties undertaken by the Group during  
the year are disclosed in note 25 to the 
Financial Statements. 
Corporate Governance
The Board’s statement on Corporate 
Governance appears on pages 28 to 31 and 
policies in relation to Employees appear on 
page 27.
Charitable donations 
During the year, the Group donated 
£136,440 to a number of charities. 
This figure includes donations to the 
Responsibility in Gambling Trust, Cancer 
Research UK and the Bishop Simeon Trust.  
Included in this total was a donation of 
£10,000 to the Friends of Israel Sport  
Centre for the Disabled, of which Brian 
Harris is the founder. 
Directors’ indemnity
Details of the Directors’ indemnity insurance 
can be found in the remuneration report. 
Purchase of own shares
The Company did not purchase any of its 
own shares during the financial period.
Policy and practice of payment of 
suppliers 
In respect of the Group’s next financial 
year, it is the policy of the Group that each 
company within the Group should agree 
appropriate terms and conditions for its 
transactions with suppliers by means 
ranging from standard written terms to 
individually negotiated contracts.  
Payments are to be made in accordance 
with these terms and conditions. At 31 July 
2008 the Company had a trade creditor 
balance of £nil (2007: £nil). Group trade 
payables presented 15 days of purchases  
(2007: 15 days). 
P Dicks Chairman and 
 Non-Executive 
A McIver Executive 
D Hobday Executive
J Wilkinson Executive 
N Payne Non-Executive 
S O’Connor Senior Independent 
  Non-Executive
B Harris Non-Executive
Substantial shareholdings 
As at 15 October 2008 the following 
Shareholders hold, or control, interests in 
3% or more of the Company’s voting rights:
Treasury management 
The Board has laid out its policy on treasury 
management in the Financial Review on 
page 24 and in note 25. 
Going concern 
The Directors have considered the 
implications of the potential impact of 
regulatory uncertainties discussed in note 
26. The Directors have reviewed the cash 
flow projections for the Group in light of 
these uncertainties and have considered 
the financial resources available to the 
Group. Accordingly, the Directors have a 
reasonable expectation that the Group and 
the Company have adequate resources 
to continue operations for the foreseeable 
future. For this reason, they continue to 
adopt the going concern basis in preparing 
the financial statements. 
Annual General Meeting 
The Annual General Meeting will be held 
on 12 December 2008. The Notice of the 
Meeting is set out on pages 88 and 93.  
The Notice contains special business, 
including the renewal of authority to the 
Board to allot shares and the dis-application 
of statutory pre-emption rights on equity 
issues for cash – both in accordance with 
ABI and NAPF Guidelines. Shareholders 
should complete the Proxy form 
accompanying this Report in accordance 
with the Notes contained in the Notice of 
Annual General Meeting. 
Directors’ responsibilities in 
relation to the accounts 
The Directors are responsible for preparing 
the Annual Report and the Financial 
Statements in accordance with applicable 
law and regulations. Company law requires 
the Directors to prepare financial statements 
for each financial year. Under that law the 
Directors have elected to prepare financial 
statements in accordance with International 
Financial Reporting Standards as adopted 
by the European Union (“IFRSs”). The 
financial statements are required by law to 
give a true and fair view of the state of affairs 
of the Group and the Company and of the 
profit or loss of the Group for that period.  
In preparing these financial statements,  
the Directors are required to:
select suitable accounting policies and •	
then apply them consistently
make judgements and estimates that are •	
reasonable and prudent
state whether applicable IFRSs have •	
been followed, subject to any material 
departures disclosed and explained in the 
Financial Statements
prepare the Financial Statements on •	
the going concern basis unless it is 
inappropriate to presume that the 
Group will continue in business. 
The Directors are responsible for keeping 
proper accounting records which disclose 
with reasonable accuracy at any time the 
financial position of the Group and the 
Company and to enable them to ensure that 
the Financial Statements comply with the 
requirements of the Companies Act 1985. 
They are also responsible for safeguarding 
the assets of the Group and hence for taking 
reasonable steps for the prevention and 
detection of fraud and other irregularities. 
The Directors are responsible for the 
maintenance and integrity of the corporate 
and financial information included on the 
Company’s website. Legislation in the 
United Kingdom governing the preparation 
and dissemination of financial statements, 
which may differ from legislation in  
other jurisdictions.  
Disclosure of information to the 
auditor 
So far as each of the Directors is aware, 
there is no relevant audit information of 
which the Company’s auditor is unaware. 
Each of the Directors has taken all the  
steps that he ought to have taken as a 
Director in order to make himself aware 
of any relevant audit information and to 
establish that the Company’s auditor is 
aware of that information. 
On behalf of the Board 
A McIver 
Director 
15 October 2008
Shareholder % 
voting 
rights
Number of 
Ordinary shares 
of 0.1p each
Fidelity 70,860,914 14.92 
Investments
DBS Advisors 60,893,903 12.82 
Limited 
Bonaire Investment  44,497,096 9.36 
Holdings Limited 
BNP Paribas  23,176,305 4.88 
Arbitrage 
Apollo Nominees 19,571,740 4.12 
Limited  WINNING MOMENTS 34 ANNUAL REPORT AND ACCOUNTS 2007-2008 35
Executive Directors       
Andrew McIver 1 500,000 500,000 21/01/04 49 29/01/07 29/01/14
 2 250,000 125,000 01/08/05 - 01/08/07 01/08/08  
 3 3,920,455 2,784,091 30/11/06 - 01/11/07 01/11/09
 4 - 1,161,057 14/12/07 - 01/11/08 01/11/09
 6 200,000 133,334 09/05/06 - 01/11/07 01/11/09
Dave Hobday 2 240,000 140,000 08/11/05 - 01/08/07 01/08/08
 3 3,136,364 246,212 30/11/06 - 01/11/07 01/11/09
 4, 8 - - 14/12/07 - 01/11/08 01/11/09
 6 50,000 - 09/05/06 - 01/11/07 01/11/09
Jim Wilkinson 4 - 608,173 01/02/08 - 01/11/08 01/11/09
 7 - 1,507,726 01/02/08 - 01/11/07 01/11/09
Mark Blandford - - - - - - -
Non-Executive Directors
Peter Dicks  5 - - - - - -
Sean O’Connor - - - - - - - 
Brian Harris - - - - - - -
Nigel Payne 1 250,000 250,000 29/01/04 49 29/01/07 29/01/14
 2 75,000 - 01/08/05 - 01/08/07 01/08/08
 6 100,000 - 09/05/06 - 01/11/07 01/11/09
Bob Holt - - - - - - -
Executive Directors   
Andrew McIver  1, 3 520 1,636 4 - 2,160 90 1,964 85
Dave Hobday 3, 10 335 816 3 1,180 2,334 129 804 60
Jim Wilkinson 3, 12 145 138 - - 283 21 - -
Mark Blandford 3, 5 - - - - - - 64 6 
Non-Executive Directors
Peter Dicks  3, 6, 7, 8  60 - - - 60 - 21 -
Sean O’Connor  3, 4, 6, 7, 8 110 - - - 110 - 101 -
Brian Harris  3, 4, 7, 8 84 - - - 84 - 84 -
Nigel Payne 1, 2, 3, 6, 8, 11 132 49 - - 181 - 2,827 21
Bob Holt 3, 9 - - - - - - 39 - 
  1,386  2,639 7 1,180 5,212 240 5,904 172
   REMUNERATION REPORT
1. DIRECTORS’ EMOLUMENTS
 
Pension 
2008
 
Pension 
2007
Total 
emoluments 
2008
Total 
emoluments 
2007
Compensation 
for loss of 
office
 
 
Benefits
 
 
Bonuses
 
 
Salary/ Fees
 
 
Notes
£000
Aggregate emoluments for Andrew 1. 
McIver, as highest paid Director, 
excluding pension contributions 
and compensation for loss of office, 
amounted to £2,160,326 (2007: Nigel 
Payne – £2,826,747). 
Nigel Payne became a Non-Executive 2. 
Director of the Company on 28 February 
2007 and was appointed Chairman of the 
Audit Committee on the same date.
The average total emoluments of the 3. 
Executive Directors was £1,592,372 
(2007: £1,414,743). The average total 
emoluments of non-Board employees 
was £76,575 (2007: £77,528). The ratio 
between the two averages was 21.6:1 
(2007: 23.1:1). 
Member of the Social Responsibility 4. 
Committee.  
Mark Blandford resigned as a Director of 5. 
the Company on 31 January 2007.
Member of the Audit Committee. 6. 
Member of the Remuneration Committee. 7. 
Member of the Nomination Committee. 8. 
Bob Holt resigned as a Director of the 9. 
Company on 31 January 2007.
Dave Hobday resigned as a Director of 10. 
the Company on 8 May 2008.
Bonus includes the release of 75,000 11. 
shares under the 2005 Share Plan and 
an interest in 33,333 shares following 
the release of a share based payment 
award on 23 October 2007. 2007 total 
emoluments include a discretionary 
bonus awarded by the Remuneration 
Committee following the cancellation of 
the Sportingbet plc Employee Benefit 
Trust. 
Jim Wilkinson appointed as a Director of 12. 
the Company on 1 February 2008.
2. INTERESTS OF DIRECTORS IN SHARE OPTIONS AND SHARE 
PLANS OF THE COMPANY
Share options granted under the 1. 
Sportingbet Plc Unapproved Executive 
Share Option Scheme 2004. 
Share awards granted under the 2. 
Sportingbet Long Term Retention Plan 
2005. During the financial year, 125,000 
shares were released to Andrew McIver, 
125,000 shares were released to Nigel 
Payne and 100,000 shares were released 
to Dave Hobday, in each case under the 
Sportingbet Long Term Retention Plan 
2005. Nigel Payne subsequently waived 
his rights to the remaining shares subject 
to this award in the light of his new role 
as Non-Executive Director.
Share awards granted under the 3. 
Sportingbet 2006 Restricted Share Plan.  
During the financial year, 1,136,364 
shares were released to Andrew McIver 
and 909,091 shares were released to 
Dave Hobday, in each case under the 
Sportingbet 2006 Restricted Share Plan.
A provisional discretionary share bonus 4. 
totalling 2,698,075 shares was made to 
Andrew McIver, Dave Hobday and Jim 
Wilkinson during the financial year on the 
dates as set out above. The awards vest 
in two equal amounts on 1 November 
2008 and 1 November 2009. If all shares 
are held (subject to a number being sold 
to meet any tax liability) an additional 
15% bonus in shares will be awarded.
Peter Dicks was appointed as Chairman 5. 
and Non-Executive Director of the 
Company on 1 February 2008.
Andrew McIver, Dave Hobday and Nigel 6. 
Payne were granted the right to earn 
shares which would vest in three equal 
parts in respect of financial years 2007, 
2008 and 2009, and would be subject to 
the same performance conditions as the 
Sportingbet 2006 Restricted Share Plan. 
During the financial year, 66,666 shares 
were released to Andrew McIver, 33,333 
were released to Nigel Payne and 16,666 
shares were released to Dave Hobday, in 
each case under this award. Nigel Payne 
subsequently waived his rights to the 
remaining shares subject to this award  
in the light of his new role as  
Non-Executive Director.
Jim Wilkinson received an award  7. 
under the Sportingbet 2006 Restricted 
Share Plan of 1,507,746 shares on  
1 February 2008.
Dave Hobday resigned as a Director on 8. 
8 May 2008. As a result, 732,323 shares 
were released on 8 July 2008 to him 
pursuant to the rules of the Sportingbet 
2006 Restricted Share Plan and 338,747 
shares were released to him under 
other company schemes.  His award of 
246,212 shares under the Sportingbet 
2006 Restricted Share Plan remains 
capable of being released to him in 
November 2009 subject to meeting 
certain conditions. All his remaining 
options and awards above have lapsed.
 
Exercise 
price (p)
 
Date of 
grant
No. of 
options at  
1 Aug 2007
No. of 
options at 
31 Jul 2008
 
 
Notes
Earliest 
exercise 
date
Expiry of 
exercise 
period WINNING MOMENTS 36 ANNUAL REPORT AND ACCOUNTS 2007-2008 37
Executive Directors
Andrew McIver 1 1,158,197 301,031 
Dave Hobday 2, 8 629,886 119,389 
Jim Wilkinson - -
Mark Blandford 7 - 12,480,173
Non-Executive Directors 
Peter Dicks 3 465,859 170,440 
Sean O’Connor 4 461,265 197,848 
Brian Harris 5 263,010 136,593 
Nigel Payne 6 176,398 176,398
Bob Holt 7 - 90,440
2. INTERESTS OF DIRECTORS IN SHARE OPTIONS AND 
SHARE PLANS OF THE COMPANY (CONTINUED)
3. INTERESTS OF DIRECTORS IN SHARES IN THE COMPANY
Notes 2008 2007
Andrew McIver received an interest in 1. 
50,000 shares on 1 August 2007 and 
75,000 shares on 23 October 2007, 
following releases of awards under the 
2005 Share Plan, of which 17,994 shares 
and 30,750 shares respectively were 
sold to meet the resulting tax liability. 
He received an interest in 1,136,364 
shares on 23 October 2007, following the 
release of an award under the 2006 Share 
Plan, of which 553,182 shares were sold 
to meet the resulting tax liability. He 
received an interest in 66,666 shares on 
23 October 2007, following the release 
of a share based performance award, of 
which 32,454 shares were sold to meet 
the resulting tax liability. He elected to 
take part of his annual discretionary 
bonus as shares, resulting in an interest 
of 202,919 shares, of which 83,197 
shares were sold to meet the resulting tax 
liability. He purchased 100,000 shares on 
29 January 2008.
Dave Hobday resigned as a Director on 2. 
8 May 2008. He received an interest in 
40,000 shares on 1 August 2007 and 
60,000 shares on 23 October 2007, 
following releases of awards under the 
2005 Share Plan, of which 14,396 shares 
and 24,600 shares respectively were 
sold to meet the resulting tax liability. He 
received an interest in 909,091 shares on 
23 October 2007, following the release of 
an award under the 2006 Share Plan, of 
which 442,546 shares were sold to meet 
the resulting tax liability. He received an 
interest in 16,666 shares on 23 October 
2007, following the release of a share 
based performance award, of which  
8,114 shares were sold to meet the 
resulting tax liability.   
Peter Dicks purchased 50,000 shares  3. 
on 1 February 2008 and 119,000  
shares on 27 March 2008.   
He received an interest in 126,417  
shares on 31 July 2008 forming part  
of his Non-Executive remuneration.
Sean O’Connor purchased 50,000 4. 
shares on 30 January 2008 and 100,000 
shares on 10 June 2008. He received 
an interest in 126,417 shares on 31 July 
2008 forming part of his Non-Executive 
remuneration.
Brian Harris received an interest in 5. 
126,417 shares on 31 July 2008 forming 
part of his Non-Executive remuneration.
Nigel Payne received an interest in 6. 
75,000 shares on 23 October 2007, 
following the release of an award under 
the 2005 Share Plan and an interest in 
33,333 shares on the same date following 
the release of a share based performance 
award, all of which he subsequently 
gifted. He also received an interest in 
126,417 shares on 31 July 2008 forming 
part of his Non-Executive remuneration, 
all of which he subsequently gifted. 
Resigned as a Director of the Company 7. 
on 31 January 2007.
2008 shareholding stated at the date  8. 
of resignation.
   REMUNERATION REPORT
Remuneration policy 
The Company’s policy is designed to attract, 
retain and motivate individuals to ensure 
the success of the Company. Remuneration 
packages are designed to reward Directors 
fairly for their contributions whilst remaining 
within the range of benefits offered by similar 
companies in the sector. 
The Remuneration Committee seeks to 
structure total benefits packages, including 
base salaries, which align the interests 
of shareholders and senior management 
with particular importance weighted upon 
the performance-related elements of such 
total remuneration. These elements are 
related to their participation in Sportingbet’s 
Share Plans, each of which only permits 
the release of an award or option subject 
to the Company meeting its performance 
conditions, details of which are given below. 
Directors’ remuneration will continue to be 
the subject of regular review in accordance 
with this policy in the next financial year. 
Terms of reference 
The terms of reference of the Remuneration 
Committee include:
To determine the remuneration •	
and benefits, including incentive 
arrangements, of the Executive Directors, 
the directors of divisional companies and 
other employees of similar status. 
To set targets for performance-related •	
pay elements of remuneration packages. 
To review recommendations from the •	
Board on the overall remuneration and 
benefits policy of the Group, with the 
power and authority to amend it  
if appropriate. 
To have regard to the provisions of •	
the Combined Code and associated 
guidance in its decision-making. 
The Directors intend that the Company’s 
remuneration policy will be set by the 
Remuneration Committee in accordance 
with the terms of reference set out above for 
the following financial year and subsequent 
financial years.
Service contracts 
The Company’s policy on the duration 
of Directors’ contracts is that for both 
Executive and Non-Executive Directors 
notice periods will be no more than one year 
served by the Company or the Director. 
Andrew McIver and Jim Wilkinson have 
Service Contracts, dated 18 January 2006 
and 21 January 2008 respectively, which 
provide for 12 months’ notice by the 
Company or the Director and contain non-
compete obligations. There are no payments 
or compensation on early termination of 
the contract, save that where a payment 
is made in lieu of notice and the executive 
commences new employment during such a 
period, they are under an obligation to repay 
the Company any pro-rated amounts.
Each Non-Executive Director has a contract 
for services, each with a termination period 
of twelve months’ notice. It is the Company’s 
policy that a proportion of their fee is paid in 
Sportingbet Shares, which are to be retained 
until they cease to be a Director of  
the Company.
In December 2006, and in the case of Jim 
Wilkinson, on 1 February 2008, Sportingbet 
Plc granted rolling indemnities to all of 
its Directors and the Company Secretary, 
uncapped in amount, in relation to certain 
losses and liabilities which they may incur 
in the course of acting as Directors and 
Company Secretary of Sportingbet Plc or 
of one or more of its subsidiaries. These 
indemnities replace those previously granted 
on similar terms and continue to be in place 
as at 31 July 2008.
11,583,883 options were exercised during 
this financial year (2007: 1,687,875) of 
which 3,244,445 options were exercised by 
Directors of the Company (2007: £Nil).  
The price paid by participants for all awards 
under the appropriate share plans is 
£43,450. The market price of shares at 31 
July 2008 was 32.75p and the range during 
the financial period was 29.50p to 59.17p.   
A summary of the performance criteria upon 
which awards or options may be exercised is 
set out below.  WINNING MOMENTS 38 ANNUAL REPORT AND ACCOUNTS 2007-2008 39
Bonuses 
The Company operates a bonus incentive 
scheme which applies, at differing 
rates, to the employment terms of the 
Executive Directors and members of 
senior management. Part of any payment 
under this scheme is linked to the annual 
performance of the business for which they 
are responsible and is at the discretion of  
the Board.
The Remuneration Committee reviews the 
packages and varies individual elements 
when appropriate from year to year. The 
Remuneration Committee has policies and 
procedures in place to monitor the size of 
potential rewards. 
On 14 December 2007 and 1 February 
2008 the Remuneration Committee 
granted Andrew McIver and Jim Wilkinson, 
respectively, the conditional right to receive 
a discretionary bonus in shares in the 
Company. These shares would vest in two 
equal amounts after the two financial periods 
ending 2008 and 2009, subject to the 
Company meeting the same performance 
conditions as the 2005 and 2006 Share 
Plans. They would also receive an additional 
15% of the award if they retain their shares 
(subject to a number being sold to meet any 
tax liability) in 2009. 
Share incentive schemes 
The Company operates five share incentive 
schemes, namely the Unapproved Share 
Option Scheme (the ‘Unapproved Scheme’), 
the Sportingbet Plc Company Share Option 
Plan (the ‘IR Approved Scheme’), the 
Sportingbet Plc Executive Share Option 
Scheme (the ‘Executive Scheme’), the 
Long Term Retention Plan 2005 (the ‘2005 
Share Plan’) and the 2006 Restricted 
Share Plan (the ‘2006 Share Plan’). Prior 
to the Company’s admission to AIM on 
30 January 2001, share options were 
granted under the Unapproved Scheme 
only. Share options are now only granted 
under the HMRC Approved Scheme and 
the Executive Scheme, unless they exceed 
the HMRC limits. The 2005 Share Plan was 
introduced on 2 August 2005 and the 2006 
Share Plan was introduced on 3 November 
2006. The Company’s policy to grant share 
options under the Executive Scheme and 
awards under the 2006 Share Plan is at the 
Remuneration Committee’s discretion as 
and when considered appropriate. 
Entitlements under the 2005 Share Plan 
entail a loyalty element and a performance 
element. The loyalty element represents 35% 
of the Executive Directors’ total potential 
awards pursuant to the 2005 Share Plan. 
Participants who remain employed by the 
Company until 31 July 2007 may exercise 
loyalty awards which have vested up to that 
date. Participants who remain employed 
by the Company until 31 July 2007 may 
exercise performance awards which may 
have vested, subject to the satisfaction of 
certain performance conditions, up to that 
date. Only Executive Directors are entitled 
to participate under the 2005 Share Plan, 
and all are subject to the same performance 
conditions. Details of the awards released 
to the Executive Directors under the 2005 
Share Plan are set out in the table on  
page 25. 
The 2006 Share Plan entails a performance 
based award, calculated as a multiple of 
salary using the three day average of the 
Company’s closing share price prior to the 
award being made. The award vests after 
the relevant periods as contained within 
each participant’s award, broadly following 
the end of the following financial year. As 
with the 2005 Plan, the shares may only vest 
and be released subject to the satisfaction 
of certain performance conditions. Only 
Executive Directors are entitled to participate 
under the 2006 Share Plan, and all are 
subject to the same performance conditions. 
As an additional incentive, on 9 May 2006 
the Remuneration Committee granted 
Andrew McIver, Dave Hobday and Nigel 
Payne the right to earn additional shares in 
the Company. These shares would vest in 
three equal amounts after the three financial 
periods ending 2007, 2008 and 2009, 
subject to the Company meeting the same 
performance conditions as the 2005 and 
2006 Share Plans.
For both the 2005 and 2006 Share Plans, 
performance conditions are based on the 
extent to which growth in the Company’s 
adjusted continuing earnings per share (‘EPS 
Growth’) exceeds growth in the retail prices 
index (‘RPI Growth’) over a financial year of 
the Company. 
   REMUNERATION REPORT
For the performance award to be exercisable 
in full, EPS Growth must exceed RPI Growth 
by 5% per financial year compound. The 
proportion of the performance award 
exercisable increases on a straight line 
sliding scale between 0 and 100% if 
EPS Growth exceeds RPI Growth by any 
margin up to 5% over a financial year. The 
Remuneration Committee continues to 
believe that, in relation to the 2005 and 2006 
Share Plans, EPS Growth in excess of RPI 
Growth is the most appropriate measure for 
determining the increase in value delivered 
to shareholders by the Company’s  
Executive Directors and other senior 
executives. The Remuneration Committee 
reviews the appropriateness of the 
performance measure and the specific target 
set when considering each new grant of 
performance awards. 
Cash based Long Term  
Incentive Plan 
In 2006, the Remuneration Committee 
reviewed the remuneration and benefits 
packages of certain key employees. As a 
result, a cash-based long term incentive 
plan (‘LTIP’) was established and offered to 
the Executive Directors and a small number 
of key employees, and which was varied 
in November 2006 in order to retain key 
employees following the enactment of the 
Unlawful Internet Gaming Enforcement Act 
2006. The LTIP pays a cash sum based 
on the relevant employee’s gross salary, 
40% of which matured in December 2007, 
with the remainder maturing in July 2009. 
In order for the employee to receive such 
payments under the LTIP , they need to 
be in employment up to and including 31 
December 2007 (in respect of the 40%) and 
31 July 2009 (in respect of the remainder). 
On behalf of the Board 
A McIver 
Director  
15 October 2008 WINNING MOMENTS 40 ANNUAL REPORT AND ACCOUNTS 2007-2008 41
   REGULATORY DEVELOPMENTS
The global supply of betting and gaming 
services remains subject to complex 
regulatory issues, including various trade 
barriers, and a lack of consistency in 
jurisdictions’ determination of where an 
online gambling transaction takes place. The 
Group continues to provide its services only 
from jurisdictions where it is licensed and 
regulated, and therefore the legal position in 
its place of supply (and where its regulator 
and applicable local laws deem the gambling 
transaction to take place) is explicitly legal. 
In order to provide its worldwide gambling 
service, the Group currently maintains 
licences in the UK, Alderney, Italy, Northern 
Cyprus, Antigua and Australia. 
Major issues of note in the last 12 months 
include:
an ongoing lack of appetite amongst •	
operators to elect to obtain a licence 
in the UK, motivated principally by the 
punitive tax rate
greater European Commission pressure •	
on EU Member States to justify their 
national gambling regimes in light of the 
free trade requirements of EU law
an apparent move towards greater •	
liberalisation in a number of EU 
jurisdictions, including France, Spain  
and Italy
passage of the prohibitive Interstate •	
Gambling Treaty in Germany 
a landmark High Court decision in •	
Australia relating to the interstate supply 
of gambling services
the recent court order authorising the •	
seizure of 141 gambling related domain 
names in the Commonwealth  
of Kentucky.
1. United Kingdom
The Group operates via an Alderney licence, 
and is therefore permitted to continue to 
advertise into the UK following the Gambling 
Act 2005 coming into full force in September 
2007. The Island of Alderney is specified by 
a subsequent regulation to the Gambling 
Act (Gambling Act 2005 (Advertising of 
Foreign Gambling) Regulations 2007) as a 
“whitelisted” jurisdiction for the purposes 
of UK advertising, (including the right to 
advertise on television). Such advertising 
is restricted to “remote gambling” which is 
defined as gambling by means of a form of 
remote communication, such as the Internet, 
telephone or television.   
A key consideration in the Group’s decision 
to relocate to Alderney was the favourable 
tax regime compared to that of the UK. It 
is clear that following the UK government’s 
decision to impose a 15% gross profits tax 
on UK licensed online gambling operators, 
only a limited number of operators are 
electing to licence their online operations in 
the UK.
2. The European Union
In Europe, the market continues to move 
slowly towards a liberalisation of supply. 
Member States are subject to scrutiny 
from The European Commission (the 
“Commission”) and, as “guardian” of the 
EC Treaty, it closely monitors existing 
and developing legislation in the EU. The 
principal method by which the Commission 
has applied pressure on Member States 
is through the use of ‘infringement 
proceedings’ against states in contravention 
of EC law. Through such proceedings, 
the Commission has asked a number of 
States to explain or even amend their laws 
restricting the free movement of gambling 
services. If Member States fail to comply, 
they will potentially be subject to legal action 
from the Commission.  
However, such a process is extremely slow, 
and while it undoubtedly exerts pressure 
on Member States, they have thus far been 
given lengthy periods in which to comply. It 
is over two years since the first infringement 
proceedings in the gambling sector were 
commenced, and the Commission has yet 
to take any Member State to court, despite 
ongoing non-compliance. Hungary, for 
example, was issued a Reasoned Opinion 
from the Commission in March 2007, giving 
it three months to amend its laws or face 
court action from the Commission.  
It has yet to implement revised laws, but has 
to date not faced any Court action for its 
failure to do so.
However, the ongoing pressure from the 
Commission, and in some cases national 
court decisions declaring domestic 
legislation to be incompatible with EU law, 
has led to a domestic review of prohibitive 
legislation in a number of jurisdictions, 
including France, Italy and Sweden. 
While Member States have a growing 
appreciation of the reality that they may 
be required to liberalise their markets, the 
precise extent to which they will in fact 
do this remains to be seen. For example, 
on the one hand, the UK model entirely 
respects the principle whereby any operator 
licensed within the EEA (or in a whitelisted 
jurisdiction), is able to target the local 
market. Conversely, the Italian model 
permits EU-based operators to service  
the jurisdiction, but insists upon a specific 
Italian licence.
3. France 
France has historically been a staunch 
opponent of the provision of online gambling 
services by operators without a French 
licence, and it currently remains the position 
that the French authorities deem such 
activity to be illegal.  
However, the Commission has put 
substantial pressure on France’s domestic 
regulation of online gambling, stating that 
its laws are not compatible with EU law. 
Accordingly, the French are undertaking a 
period of internal review. 
4. Spain
As a result of the legal uncertainty over the 
legality of the provision of online gambling, 
which is not expressly prohibited by Spanish 
law, Spain has historically adopted a tolerant 
approach to the supply of foreign gambling 
services into the jurisdiction.
Madrid and the Basque region have both 
introduced licensing regimes for online 
betting, which has led to the Spanish 
government considering a nationwide 
system of regulation which will permit 
operators to obtain a Spanish  
gambling licence. 
5. Italy
Italy has changed its monopoly-orientated 
stance on online gambling and has 
started to permit a number of non-Italian 
bookmakers to obtain licences to operate 
online betting offerings from certain outlets 
such as newsagents, bars and cafes.
However, Italy currently requires that even 
EU-licensed operators obtain an additional 
gambling licence in Italy in order to target 
its domestic market. Such an approach 
appears to be in breach of the EU principle 
of mutual recognition of businesses  
licensed elsewhere in the EU. It remains 
to be seen whether such a stance will be 
permitted by the Commission in the  
long term. 
6. Germany
Despite criticism from the Commission that 
it was in breach of EU law, Germany passed 
the Interstate Gambling Treaty on 1 January 
2008. The Treaty effectively provides that all 
forms of online gambling are unlawful where 
they are targeted at German residents.
However, the Treaty was immediately 
subject to infringement proceedings by 
the Commission in light of its apparent 
incompatibility with EU law, notably the fact 
that there was no obvious justification for 
Germany to close the online market and 
restrict gambling activity within Germany to 
state monopolies. Whilst enforcement action 
against operators where they actively target 
German residents (including through local 
marketing and even operation) has been 
curbed due to the lack of clarity in this legal 
position, there can be no guarantee that 
enforcement action will not occur. 
7. Australia
In March 2008, the High Court ruled 
in favour of a claim brought by Betfair 
against the state of Western Australia. The 
proceedings involved a challenge by Betfair 
against prohibitions introduced by Western 
Australia which precluded persons placing 
bets on Betfair and publishing Western 
Australian race fields without the relevant 
approval, on the grounds that they were 
an unfair (and unconstitutional) restriction 
on competition in circumstances where 
Betfair held a Tasmanian licence. Further 
protectionist legislation in New South 
Wales (introduced in July 2008), which 
requires a fee to be paid before state racing 
information can be published by betting 
operators is also subject to an ongoing legal 
challenge. It is also argued that such fees 
are an unconstitutional violation of Australian 
free trade principles. 
8. United States
Following the ruling in the US’s ongoing 
World Trade Organisation (WTO) dispute 
with Antigua and Barbuda, which held 
in favour of Antigua, the US elected to 
withdraw gambling services from its WTO 
free trade commitments. As a result, the 
US was required to agree compensation 
arrangements with a number of affected  WINNING MOMENTS 42 ANNUAL REPORT AND ACCOUNTS 2007-2008 43
jurisdictions, including the European Union, 
which it did in December 2007. However, 
such compensation measures failed 
to redress the position for the affected 
gambling industry, as it merely permitted the 
EU greater freedoms in certain other, non-
gambling, areas of US trade. 
There have been suggestions that, in 
light of the economic downturn in the 
US, and the resultant loss of revenue for 
land-based casino operators, a form of 
wider liberalisation may occur in the online 
gambling market. However, no legislative 
efforts have yet been successful on  
this point.
In a recent development, the Commonwealth 
of Kentucky was successfully awarded a 
preliminary seizure order on 18 September 
2008 by the Franklin Circuit Court in 
Kentucky for the seizure and forfeiture 
of 141 domain names that are alleged to 
have been used in connection with illegal 
gambling activity within the Commonwealth 
of Kentucky in violation of local state laws. 
No domain names owned by, or associated 
with Sportingbet, were among the 141 
subject to the Court Order and none of the 
Company’s domain names are managed by 
a US company. The worldwide enforceability  
of an order made by a Kentucky court  
remains unclear.  
9. Asia
The Asian market continues to develop, 
although it currently remains subject to very 
specific methods of business, such as the 
use of agents, very cash based payment 
systems, often with the provision of credit 
to customers. Accordingly, while the betting 
and gaming markets are substantial, they are 
heavily dominated by a number of Eastern-
based operators with a deep-rooted position 
and understanding of the local gambling 
culture. The extent to which Western 
operators will challenge this status remains 
to be seen. Additionally, the regulatory 
regime in many Asian countries is currently 
prohibitive and, at present, the Group has no 
operations or activities in Asia.
   REGULATORY DEVELOPMENTS
10. T urkey
Anti-online gambling legislation was 
introduced in Turkey in February 2007 to 
update existing legislation and underpin 
the State monopoly. The Group continues 
to accept bets from Turkish residents, 
although it does not have employees nor 
does it conduct advertising in the territory. 
However, two Group employees were 
arrested when making visits to Turkey in May 
2008 on personal business, one has been 
subsequently released and has returned to 
the UK. The remaining employee has been 
released pending trial and charges have yet 
to be formalised.
We have audited the Group financial 
statements of Sportingbet Plc for the year 
ended 31 July 2008 which comprise the 
principal accounting policies, the Group 
Income Statement, the Group Balance 
Sheet, the Group Cash Flow Statement, the 
Group Statement of Recognised Income and 
Expense and Notes 1 to 27. These Group 
financial statements have been  
prepared under the accounting policies  
set out therein. 
We have reported separately on the parent 
company financial statements of Sportingbet 
plc for the year ended 31 July 2008 .
This report is made solely to the Company’s 
members, as a body, in accordance with 
Section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that 
we might state to the Company’s members 
those matters we are required to state to 
them in an auditor's report and for no other 
purpose. To the fullest extent permitted 
by law, we do not accept or assume 
responsibility to anyone other than the 
Company and the Company’s members as 
a body, for our audit work, for this report, or 
for the opinions we have formed. 
Respective responsibilities of 
Directors and auditor
The Directors' responsibilities for preparing 
the Annual Report and the Group financial 
statements in accordance with United 
Kingdom law and International Financial 
Reporting Standards (IFRSs) as adopted 
by the European Union are set out in the 
Statement of Directors' Responsibilities.
Our responsibility is to audit the Group 
financial statements in accordance with 
relevant legal and regulatory requirements 
and International Standards on Auditing (UK 
and Ireland).
We report to you our opinion as to whether 
the Group financial statements give a 
true and fair view and whether the Group 
financial statements have been properly 
prepared in accordance with the Companies 
Act 1985. We also report to you whether 
in our opinion the information given in 
the Directors' Report is consistent with 
the financial statements.  The information 
given in the Directors' Report includes that 
specific information presented in the Chief 
Executive's Statement and Business Review 
that is cross referred from the Review of the 
Business and Future Developments section 
of the Directors' Report.
In addition we report to you if, in our 
opinion, we have not received all the 
information and explanations we require for 
our audit, or if information specified by law 
regarding directors' remuneration and other 
transactions is not disclosed. 
We read other information contained in the 
Annual Report and consider whether it is 
consistent with the audited parent company 
financial statements. This other information 
comprises only the Chief Executive's 
Statement, Business Review, Chairman's 
Statement, Financial Review, Corporate 
Social Responsibility Statement, Corporate 
Governance Statement, Directors' Report, 
Remuneration Report and Regulatory 
Developments. We consider the implications 
for our report if we become aware of 
any apparent misstatements or material 
inconsistencies with the Group financial 
statements. Our responsibilities do not 
extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with 
International Standards on Auditing (UK and 
Ireland) issued by the Auditing Practices 
Board. An audit includes examination, on 
a test basis, of evidence relevant to the 
amounts and disclosures in the group 
financial statements. It also includes an 
assessment of the significant estimates 
and judgments made by the Directors 
in the preparation of the Group financial 
statements, and of whether the accounting 
policies are appropriate to the Group's 
circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as 
to obtain all the information and explanations 
which we considered necessary in order 
to provide us with sufficient evidence to 
give reasonable assurance that the group 
financial statements are free from material 
misstatement, whether caused by fraud 
or other irregularity or error. In forming 
our opinion we also evaluated the overall 
adequacy of the presentation of information 
in the Group financial statements.
Emphasis of matter - regulatory 
uncertainty
In forming our opinion on the financial 
statements, which is not qualified, we 
have considered the accuracy of, and 
draw attention to, the disclosures made 
in Note 26 regarding the implications of, 
and uncertainties arising from, regulatory 
developments concerning on-line gambling 
and related activities in the United States, 
Turkey and parts of Europe. There is 
uncertainty as to the impact of such 
regulatory developments may have on the 
company.  Note 26 includes a statement 
that the Board does not consider it probable 
that a material liability or impairment in the 
carrying value of assets will arise as a result 
of any potential action.
Opinion
In our opinion:
The Group financial statements give a •	
true and fair view, in accordance with 
IFRSs as adopted by the European 
Union, of the state of the group's affairs 
as at 31 July 2008 and of its loss for the 
year then ended;
The Group financial statements have •	
been properly prepared in accordance 
with the Companies Act 1985; and 
The information given in the Directors' •	
Report is consistent with the financial 
statements.
GRANT THORNTON UK LLP 
REGISTERED AUDITOR 
CHARTERED ACCOUNTANTS 
London 
15 October 2008
   REPORT OF THE INDEPENDENT 
AUDITOR TO THE MEMBERS OF 
SPORTINGBET PLC WINNING MOMENTS 44 ANNUAL REPORT AND ACCOUNTS 2007-2008 45
Non-current assets    
Goodwill 12 53.0 44.4
Other intangible assets 13 15.2 10.3
Property, plant and equipment 14 21.1 12.8
Non-current receivables  0.5 0.5
  89.8 68.0
Current assets 
Trade and other receivables 15 8.2 9.1
Cash and cash equivalents 16 49.4 34.5
  57.6 43.6
Current liabilities    
Trade and other payables 17 (52.8) (34.1)
Interest bearing loans and borrowings 17 (5.6) (5.3)
Contingent consideration 17 (4.5) -
  (62.9) (39.4)
Net current (liabilities)/assets  (5.3) 4.2
Non-current liabilities    
Deferred consideration  - (0.1)
Long-term provisions 18 (0.1) (0.3)
  (0.1) (0.4)
Net assets  84.4 71.8
Equity    
Issued share capital 20 0.5 0.4
Shares to be issued 21 9.0 14.6
Share premium 21 56.3 42.9
Retained earnings 21 20.1 16.8
Foreign exchange reserve 21 (1.5) (2.6)
Equity attributable to equity holders of the parent  84.4 72.1
Minority interest  - (0.3)
Total equity  84.4 71.8
Year Ended As at
   CONSOLIDATED INCOME 
ST ATEMENT 
The Notes on pages 48 to 79 form part of these financial statements. 
FOR THE YEAR ENDED 31 JUL Y 2008
   CONSOLIDATED BALANCE 
SHEET 
The Notes on pages 48 to 79 form part of these financial statements. These financial statements were approved by 
the Board and authorised for issue on 15 October 2008. 
A McIver 
Director 
AS AT 31 JUL Y 2008
31 July 
2008 
£m
31 July 
2008 
£m
31 July 
2007 
£m
31 July 
2007 
£m
 
 
Notes
 
 
Notes
Amounts wagered 4 1,364.2 1,096.4
Net gaming revenue 3, 4 147.0 119.4
 
Administrative expenses excluding exceptional items, share option charge and amortisation of other  
intangible assets    (124.3)  (114.5)
Group operating profit before exceptional items, share option charge and amortisation of other  
intangible assets    22.7  4.9
Other administrative expenses: 
    Exceptional items 5 (12.0) (26.8)
    Share option charge 7 (8.0) (9.9)
    Amortisation of other intangible assets 13 (3.9) (1.8)
    
Total administrative expenses  (148.2) (153.0)
Group operating loss  (1.2) (33.6) 
Finance income 9 0.8 1.2
Finance costs 9 (0.4) (0.2)
Loss before taxation 6 (0.8) (32.6)
Taxation 10 (3.5) (1.2)
Loss for the year  (4.3) (33.8)
Loss for the year from discontinued operations 2 - (281.3)
Group loss for the year  (4.3) (315.1)
Loss attributable to minority interest  - 0.6
Loss attributable to the equity holders of the parent  (4.3) (314.5)
Loss per ordinary share – continuing operations    
Basic 11 (0.9)p (7.7)p
Diluted 11 (0.9)p (7.7)p
Loss per ordinary share – continuing and discontinued operations    
Basic 11 (0.9)p (73.2)p
Diluted 11 (0.9)p (73.2)p WINNING MOMENTS 46 ANNUAL REPORT AND ACCOUNTS 2007-2008 47
Group loss after taxation  (4.3) (33.8)
Depreciation  3.7 5.6
Software amortisation  2.8 1.4
Other amortisation  3.9 1.8
Impairment of goodwill  - 9.2
Write-off of property, plant and equipment  - 5.1
Share option charge  8.0 9.9
Finance income  (0.4) (1.0)
Taxation  3.5 1.2
Operating cash flows before movements in working capital  17.2 (0.6)
(Increase)/decrease in receivables  (0.7) 1.6
Increase in payables  17.9 0.4
Cash generated by operations  34.4 1.4
Income tax paid  (1.4) (1.3)
Net cash from operating activities  33.0 0.1
Purchases of property, plant and equipment 14 (12.2) (13.5)
Purchases of software 13 (2.8) (3.6)
Acquisition of subsidiary  (4.6) (3.1)
Interest received  0.4 1.1
Cash used in investing activities  (19.2) (19.1)
Exercise of share options  - 0.1
New bank loans raised  0.3 5.3
Net cash from financing activities  0.3 5.4
Net increase/(decrease) in cash and cash equivalents in the year  14.1 (13.6)
Net decrease in cash and cash equivalents in the year from discontinued operations 2 - (45.7)
Cash and cash equivalents at beginning of year  34.5 97.2
Effect of foreign exchange rate changes  0.8 (3.4)
Cash and cash equivalents at end of year 16 49.4 34.5
   CONSOLIDATED CASH 
FLOW ST ATEMENT 
FOR THE YEAR ENDED 31 JUL Y 2008
   GROUP ST ATEMENT OF 
RECOGNISED INCOME 
AND EXPENSE 
FOR THE YEAR ENDED 31 JUL Y 2008
2008 
£m
31 July 
2008 
£m
2007  
£m
31 July 
2007  
£m
Exchange differences on translation of foreign operations  1.1 4.2
Net income recognised directly in equity  1.1 4.2
Loss for financial year  (4.3) (315.1)
Total recognised income and expense for the year  (3.2) (310.9)
Attributable to:   
Equity holders of the parent  (3.2) (311.5)
Minority interests  - 0.6
  (3.2) (310.9)
Year Ended
 
 
Notes
The Notes on pages 48 to 79 form part of these financial statements.  WINNING MOMENTS 48 ANNUAL REPORT AND ACCOUNTS 2007-2008 49
Basis of preparation 
The financial information provided is for the 
Group’s financial year ended 31 July 2008. 
The financial information has been prepared 
in accordance with applicable IFRSs as 
adopted by the EU.    
The accounting policies have been  
applied consistently throughout the Group 
for the purposes of preparation of this 
financial information.  
Standards in issue not yet 
effective
The IASB and IFRIC have issued the 
following Standards and Interpretations 
which are effective for periods starting after 
the date of these financial statements and 
are yet to be adopted by the Group.
International Accounting Standards 
(IAS/IFRS) 
IAS 1 Presentation of Financial •	
Statements (revised 2007) -  
1 January 2009 
IAS 23 Borrowing Costs (revised 2007) - •	
1 January 2009 
IAS 27 Consolidated and Separate •	
Financial Statements (revised 2008) -  
1 July 2009 
Amendment to IFRS 2 Share-based •	
Payment - Vesting Conditions and 
Cancellations - 1 January 2009 
Amendments to IFRS 1 First-time •	
Adoption of International Financial 
Reporting Standards and IAS 27 
Consolidated and Separate Financial 
Statements -  1 January 2009 
Amendment to IAS 39 Financial •	
Instruments: Recognition and 
Measurement - Eligible Hedged Items -  
1 July 2009 
IFRS 3 Business Combinations (Revised •	
2008) - 1 July 2009 
IFRS 8 Operating Segments -  •	
1 January 2009
International Financial Reporting •	
Interpretations Committee (IFRIC) 
IFRIC 12 Service Concession •	
Arrangements - 1 January 2008 
IFRIC 14 IAS 19 - The Limit on a Defined •	
Benefit Asset, Minimum Funding 
Requirements and their Interaction - 
 1 January 2008 
IFRIC 16 Hedges of a Net Investment in a •	
Foreign Operation - 1 October 2008
The Group does not anticipate that 
the adoption of these Standards and 
Interpretations will have a material effect on 
its financial statements on initial adoption. 
IFRS 8 may require changes in the scope 
and presentation of segmental disclosures 
and IAS 1 will require additional disclosures 
on capital resources.
Basis of consolidation – 
subsidiaries 
The Group financial statements for the year 
consolidate the financial statements of 
Sportingbet Plc and the entities it controls 
(its subsidiaries).
Subsidiaries are consolidated from their date 
of acquisition, being the date on which the 
Group obtains control, and continue to be 
consolidated until the date that such control 
ceases. Control comprises the power to 
govern the financial and operating policies of 
the investee so as to obtain benefit from its 
activities and is achieved through direct or 
indirect ownership of voting rights, currently 
exercisable or convertible potential voting 
rights or by way of contractual agreement. 
Accounting policies are consistently applied 
across the Group. All inter-company 
balances and transactions are eliminated.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
Business combinations 
On acquisition, the assets, liabilities and 
contingent liabilities of a subsidiary are 
measured at their fair values at the date 
of acquisition. Any excess of the cost 
of acquisition over the fair values of the 
identifiable net assets acquired is recognised 
as goodwill. Any deficiency of the cost 
of acquisition below the fair values of the 
identifiable net assets acquired (i.e. discount 
on acquisition) is credited to the income 
statement in the period of acquisition. 
Piecemeal acquisitions (where the company 
is already a subsidiary) are considered to be 
acquisitions of minority interests, rather than 
separate business combinations.
Contingent and deferred consideration 
arising as a result of acquisitions is stated at 
fair value. Contingent consideration is based 
on management’s best estimate of the likely 
outcome. The fair value of contingent share 
consideration is measured based on the 
market price of shares at acquisition.
Restatement of comparatives 
The Group’s consolidated financial 
statements were prepared in accordance 
with United Kingdom Generally Accepted 
Accounting Principles (“UK GAAP”) until 
31 July 2007. The date of transition to 
IFRSs was 1 August 2006. The comparative 
figures in respect of the year ended 31 
July 2007 have been restated to reflect 
changes in accounting policies as a result 
of the adoption of the IFRS. The disclosures 
required by IFRS 1 concerning the transition 
from UK GAAP to IFRS are given in the 
reconciliation schedules, presented and 
explained in Note 27.
In accordance with IFRS 1 the Group 
is entitled to a number of voluntary and 
mandatory exemptions from full restatement.  
The following exemption has been adopted:
IFRS 3 •	 Business Combinations has 
not been applied to acquisitions of 
subsidiaries that occurred prior to  
1 August 2006.
Amounts wagered
Amounts wagered represents amounts 
staked in respect of bets placed on sporting 
events in the year, net win in respect of 
casino and gaming, and rake in respect of 
poker games that have concluded in the 
year. Amounts wagered are stated net of 
certain promotional bonuses.
Net gaming revenue
Net gaming revenue is measured at the 
fair value of consideration received or 
receivable, and comprises the following:
Sports betting: Gains and losses in •	
respect of bets placed on sporting events 
in the year, stated after betting taxes and 
certain promotional bonuses. 
Open positions are carried at fair market 
value and gains and losses arising on 
this valuation are recognised in revenue, 
as well as gains and losses realised on 
positions that have closed. 
Casino and gaming: Net win in respect •	
of bets placed on casino games that 
have concluded in the year, stated net of 
certain promotional bonuses.
Poker: Net win in respect of rake for •	
poker games that have concluded in the 
year, stated net of certain promotional 
bonuses.
Where the Group refers to gaming revenue, 
this represents net gaming revenue before 
the deduction of promotional bonuses.
Goodwill
Goodwill represents the excess of the cost 
of an acquisition over the Group’s share of 
the fair value of the identifiable assets and 
liabilities acquired. Goodwill is allocated to 
cash generating units for the purpose of 
impairment testing.
For acquisitions that occurred on or after 
1 August 2006, goodwill is not amortised 
and is reviewed for impairment at least 
annually. Any impairment is recognised 
immediately in the income statement and is 
not subsequently reversed. Goodwill arising 
on earlier acquisitions was being amortised 
over its estimated useful life of 20 years.  
 In accordance with the transitional 
provisions of IFRS 3 “Business 
Combinations”, the unamortised balance 
of goodwill at 31 July 2006 was frozen 
and reviewed for impairment, and will be 
reviewed for impairment at least annually.
Computer software 
Where, in the opinion of the Directors, 
the Group’s expenditure in relation to 
development of internet activities results in 
future economic benefits, these costs are 
capitalised and amortised over the useful 
economic life of the asset.
Development costs are capitalised only 
when it is probable that future economic 
benefit will result from the project and the 
following criteria are met: 
The technical feasibility of the product •	
has been ascertained.
Adequate technical, financial and other •	
resources are available to complete and 
sell or use the intangible asset.
The Group can demonstrate how the •	
intangible asset will generate future 
economic benefits and the ability to 
use or sell the intangible asset can be 
demonstrated.
It is the intention of management to •	
complete the intangible asset and use it 
or sell it.
The development costs can be  •	
measured reliably.
Amortisation is provided on computer 
software at a rate calculated to write each 
asset down to its estimated residual  
value, using the straight line method, over its 
expected useful life, as follows:
Methods of amortisation, residual values 
and useful lives are reviewed and adjusted, if 
appropriate, at each balance sheet date.
1. ACCOUNTING POLICIES 1. ACCOUNTING POLICIES
33% on cost Computer software WINNING MOMENTS 50 ANNUAL REPORT AND ACCOUNTS 2007-2008 51
Financial instruments 
Financial assets and financial liabilities are 
recognised on the Group’s balance sheet 
when the Group becomes a party to the 
contractual provisions of the instrument.
T rade receivables
Trade receivables are recognised initially at 
fair value and subsequently measured at 
amortised cost using the effective interest 
method, less provision for impairment.  
A provision for impairment of trade 
receivables is established when there is 
objective evidence that the Group will not 
be able to collect all amounts due according 
to the original terms of the receivables. 
Significant financial difficulties of the 
debtor, probability that the debtor will enter 
bankruptcy or financial reorganisation, and 
default or delinquency in payments (more 
than 60 days overdue) are considered 
indicators that the trade receivable is 
impaired. The amount of the provision is 
the difference between the asset’s carrying 
amount and the present value of estimated 
future cash flows, discounted at the original 
effective interest rate. The carrying amount 
of the asset is reduced through the use of an 
allowance account, and the amount of the 
loss is recognised in the Income Statement 
within ‘Other administrative expenses’. 
When a trade receivable is uncollectible, it is 
written off against the allowance account for 
trade receivables. Subsequent recoveries of 
amounts previously written off are credited 
against ‘Other administrative expenses’ in 
the income statement.
Cash and cash equivalents
Cash and cash equivalents include cash in 
hand deposits with banks. It also includes 
cash reserves and cash in transit held by 
payment service providers.
Financial liabilities and equity
Financial liabilities and equity instruments 
are classified according to the substance of 
the contractual arrangements entered into.  
An equity instrument is any contract that 
evidences a residual interest in the assets of 
the Group after deducting all of its liabilities.
Interest bearing loans and other 
borrowings
Borrowings are recognised initially at fair 
value, net of transaction costs incurred.  
Borrowings are subsequently stated at 
amortised cost; and the difference  
between the proceeds (net of transaction 
costs) and the redemption value is 
recognised in the income statement over  
the period of the borrowings using the 
effective interest method.
Borrowings are classified as current liabilities 
unless the Group has an unconditional right 
to defer settlement of the liability for at least 
12 months after the balance sheet date.
T rade payables
Trade payables are not interest-bearing 
and are stated initially at their fair value and 
thereafter at their amortised cost using the 
effective interest rate method. The fair value 
of trade and other payables has not been 
disclosed as, due to their short duration, 
management considers the carrying values 
recognised in the balance sheet to be a 
reasonable approximation of their fair value.
Equity instruments
Equity instruments issued are recorded  
at the proceeds received, net of direct  
issue costs.
Derivative financial instruments
The Group’s activities expose it primarily 
to the financial risks of changes in foreign 
currency exchange rates. The Group retains 
cash balances in foreign currencies matched 
against its foreign currency liabilities (client 
deposit accounts) to reduce its exposure to 
foreign currency exchange rates. The Group 
does not use derivative financial instruments 
for speculative purposes.
The use of financial derivatives is governed 
by the Group’s policies approved by the 
Board of Directors, which provide written 
principles on the use of financial derivatives. 
Dividends 
Dividends are recognised when they 
become legally payable. Interim dividends 
are recognised when paid. Final dividends 
are recognised when approved by the 
shareholders at an annual general meeting. 
Functional and presentational 
currency
Items included in the financial statements of 
each of the Group’s entities are measured 
using the currency of the primary economic 
environment in which the entity operates 
(“the functional currency”). The consolidated 
financial statements are presented in sterling 
(£) which is the parent’s functional and 
presentational currency.
Foreign currency translation
Foreign currency transactions of individual 
companies are translated at the rates ruling 
when they occurred. Foreign currency 
monetary assets and liabilities are translated 
at the closing spot rate. Any differences are 
taken to the income statement. 
The results of overseas operations are 
translated at the average rates of exchange 
during the year and their balance sheets 
translated into sterling at the rates of 
exchange ruling on the balance sheet date. 
Exchange differences which arise from 
translation of the opening net assets and 
results of foreign subsidiary undertakings 
and from translating the income statement  
at an average rate are taken to reserves. 
T axation
The tax expense represents the sum of the 
tax currently payable and deferred tax.
The tax currently payable is based on 
taxable profit for the year. Taxable profit 
differs from net profit as reported in the 
income statement because it excludes 
items of income or expense that are taxable 
or deductible in other years and it further 
excludes items that are never taxable or 
deductible. The Group’s liability for current 
tax is calculated using tax rates that have 
been enacted or substantively enacted by 
the balance sheet date.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
1. ACCOUNTING POLICIES (CONTINUED) 1. ACCOUNTING POLICIES (CONTINUED)
Other intangible assets 
Identifiable intangible assets aquired as 
part of business combinations, that meet 
the conditions for recognition under IFRS 
3, are recognised at their fair value at the 
acquisition date and amortised over their 
useful economic life as follows:
Property, plant and equipment
Property, plant and equipment is stated 
at cost less accumulated depreciation. 
Depreciation is provided on all property, 
plant and equipment except for freehold 
land at rates calculated to write each asset 
down to its estimated residual value, using 
the straight line method, over its expected 
useful life, as follows: 
Methods of depreciation, residual values and 
useful lives are reviewed and adjusted,  
if appropriate, at each balance sheet date. 
Leasehold improvements are included 
within fixtures, fittings and equipment in the 
property, plant and equipment note.
Impairment of property, plant and 
equipment and intangible assets
At each balance sheet date, the Group 
reviews the carrying amounts of its property, 
plant and equipment and other intangible 
assets to determine whether there is any 
indication that those assets have suffered 
an impairment loss. If any such indication 
exists, the recoverable amount of the asset 
is estimated in order to determine the extent 
of the impairment loss (if any). Where the 
asset does not generate cash flows that 
are independent from other assets, the 
Group estimates the recoverable amount 
of the cash-generating unit to which the 
asset belongs. An intangible asset with an 
indefinite useful life is tested for impairment 
annually and whenever there is an indication 
that the asset may be impaired.
Recoverable amount is the higher of fair 
value less costs to sell and value in use.   
In assessing value in use, the estimated 
future cash flows are discounted to their 
present value using a pre-tax discount rate 
that reflects current market assessments 
of the time value of money and the risks 
specific to the asset for which the estimates 
of future cash flows have not been adjusted.
If the recoverable amount of an asset (or 
cash-generating unit) is estimated to be 
less than its carrying amount, the carrying 
amount of the asset (or cash-generating 
unit) is reduced to its recoverable amount.  
An impairment loss is recognised as an 
expense immediately, unless the relevant 
asset is carried at a revalued amount, in 
which case the impairment loss is treated as 
a revaluation decrease.
Where an impairment loss subsequently 
reverses, the carrying amount of the asset 
(or cash-generating unit) is increased to the 
revised estimate of its recoverable amount, 
but so that the increased carrying amount 
does not exceed the carrying amount 
that would have been determined had no 
impairment loss been recognised for the 
asset (or cash-generating unit) in prior 
years. A reversal of an impairment loss is 
recognised as income immediately,  
unless the relevant asset is carried at a 
revalued amount, in which case the reversal 
of the impairment loss is treated as a 
revaluation increase.
Finance costs 
Finance costs are charged to profit over the 
term of the debt so that the amount charged 
is at a constant rate on the carrying amount.
Finance costs include issue costs, which  
are initially recognised as a reduction  
in the proceeds of the associated  
financial instrument.
25% on cost 
10% on cost 
25% on cost
33% on cost
Fixtures, fittings  
and equipment
Leasehold 
improvements
Motor vehicles
Computer equipment
33% on cost
86% on cost 
 
20% on cost
Superbahis URL
Maslin Properties 
Limited - marketing 
contract
Belmond International 
Ltd - marketing contract WINNING MOMENTS 52 ANNUAL REPORT AND ACCOUNTS 2007-2008 53
Exceptional items
Exceptional items are those that in 
management’s judgement need to be 
disclosed by virtue of their size or incidence 
in order for the user to obtain a proper 
understanding of the financial information.
Provisions
Provisions are recognised when the Group 
has a present obligation as a result of a 
past event, and it is probable that the Group 
will be required to settle that obligation.  
Provisions are measured at the directors’ 
best estimate of the expenditure required 
to settle the obligation at the balance sheet 
date, and are discounted to present value 
where the effect is material. 
Critical accounting judgements 
and key sources of estimation 
uncertainty 
In the application of the accounting policies, 
which are detailed in this note, the directors 
are required to make judgements, estimates 
and assumptions about the carrying 
amounts of assets and liabilities that are not 
readily apparent from other sources.   
The estimates and associated assumptions 
are based on historical experience and 
other factors that are considered to be 
relevant. Actual results may differ from 
these estimates.
The estimates and underlying assumptions 
are reviewed on an ongoing basis. Revisions 
to accounting estimates are recognised in 
the period in which the estimate is revised if 
the revision affects only that period, or in the 
period of the revision and future periods if 
the revision affects both current and  
future periods.
The estimates and assumptions, which 
have a significant risk of causing a material 
adjustment to the carrying amounts of 
assets and liabilities within the next financial 
year, are discussed below.
Impairment of goodwill
Determining whether goodwill is impaired 
requires an estimation of the value in use of 
the cash-generating units. The value in use 
calculation requires the entity to estimate the 
future cash flows expected to arise from the 
cash-generating unit and select a suitable 
discount rate in order to calculate present 
value. Note 12 provides information  
on the assumptions used in these  
financial statements.
Open bets
In accordance with the Group’s accounting 
policy, management monitors open betting 
positions on a monthly basis to ensure 
any significant changes in fair value are 
recognised in revenue. 
Share based payments
Management applies valuation techniques 
to calculate the fair value of share option 
charges. Note 22 provides information  
on the assumptions used in these  
financial statements.
Intangible assets
For acquisitions that occurred on or after 1 
August 2006, management has recognised 
separately identifiable intangible assets on 
the balance sheet. These intangible assets 
have been valued based on expected 
future cash flow projections from existing 
customers. The calculations of the value 
and estimated future economic life of the 
assets involve, by the nature of the assets, 
significant judgement.
Customer liabilities
Customer liabilities represent cash held by 
the Group on behalf of customers.   
In calculating the fair value of customer 
liabilities, management applies judgement 
in assessing the likelihood of balances 
outstanding for over six months being 
reclaimed. The fair value of customer 
liabilities is therefore the total value of 
cash due to customers less management’s 
assessment of aged unclaimed balances 
remaining uncollected.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
1. ACCOUNTING POLICIES (CONTINUED) 1. ACCOUNTING POLICIES (CONTINUED)
Deferred tax
Deferred tax is the tax expected to be 
payable or recoverable on differences 
between the carrying amounts of assets 
and liabilities in the financial statements 
and the corresponding tax bases used 
in the computation of taxable profit, and 
is accounted for using the balance sheet 
liability method. Deferred tax liabilities 
are generally recognised for all taxable 
temporary differences and deferred tax 
assets are recognised to the extent that it is 
probable that taxable profits will be available 
against which deductible temporary 
differences can be utilised. Such assets and 
liabilities are not recognised if the temporary 
difference arises from the initial recognition 
of goodwill or of other assets and liabilities 
in a transaction (other than in a business 
combination) that affects neither the tax 
profit nor the accounting profit.
Deferred tax liabilities are recognised for 
taxable temporary differences arising on 
investments in subsidiaries except where the 
Group is able to control the reversal of the 
temporary difference and it is probable that 
the temporary difference will not reverse in 
the foreseeable future.
The carrying amount of deferred tax assets 
is reviewed at each balance sheet date and 
reduced to the extent that it is no longer 
probable that sufficient taxable profits will be 
available to allow all or part of the asset to 
be recovered.
Deferred tax is calculated at the tax rates 
that are expected to apply in the year when 
the liability is settled or the asset is realised.  
Deferred tax is charged or credited in the 
income statement, except when it relates to 
items charged or credited directly to equity, 
in which case the deferred tax is also dealt 
with in equity.
Employee benefits
Pension costs 
For defined contribution arrangements the 
amount charged to the income statement in 
respect of pension costs and other post-
retirement benefits is the contributions 
payable in the year. Differences between 
contributions payable in the year and 
contributions actually paid are shown 
as either accruals or prepayments in the 
balance sheet.
Share based employee remuneration 
Where share options are awarded to 
employees, the fair value of the options  
at the date of grant is charged to the  
income statement over the vesting period, 
with the corresponding credit to the profit 
and loss reserve. Non-market vesting 
conditions are taken into account by 
adjusting the number of equity instruments 
expected to vest at each balance sheet date 
so that, ultimately, the cumulative amount 
recognised over the vesting period is based 
on the number of options that eventually 
vest. Market vesting conditions are factored 
into the fair value of the options granted. 
As long as all other vesting conditions are 
satisfied, a charge is made irrespective of 
whether the market vesting conditions are 
satisfied. The cumulative expense is not 
adjusted for failure to achieve a market 
vesting condition.
Where the terms of the options are modified 
before they vest, the increase in the fair 
value of the options, measured immediately 
before and after the modification, is also 
charged to the income statement over the 
remaining vesting period.
Where equity instruments are granted to 
persons other than employees, the income 
statement is charged with the fair value of 
goods and services received.
The proceeds received, net of any directly 
attributable transaction costs, are credited 
to share capital (nominal value) and share 
premium when the options are exercised.
Leases 
Leases are classified as finance leases 
whenever the terms of the lease transfer 
substantially all the risks and rewards of 
ownership to the lessee. All the other leases 
are classified as operating leases.
The Group as lessee
Assets held under finance leases and other 
similar contracts, which confer rights and 
obligations similar to those attached to 
owned assets, are capitalised as property, 
plant and equipment and are depreciated 
over the shorter of the lease terms and their 
useful lives. The capital elements of future 
lease obligations are recorded as liabilities, 
while the interest elements are charged to 
the income statement over the period of 
the leases to produce a constant rate of 
charge on the balance of capital repayments 
outstanding. Hire purchase transactions are 
dealt with similarly, except that assets are 
depreciated over their useful lives.
Rentals under operating leases are charged 
on a straight line basis over the lease term, 
even if the payments are not made on such 
a basis. Benefits received and receivable as 
an incentive to sign an operating lease are 
similarly spread on a straight line basis over 
the lease term.
The Group as lessor
Rental income from the Group’s land and 
buildings, accounted for within property, 
plant and equipment, operating leases is 
recognised on a straight line basis over the 
lease term. WINNING MOMENTS 54 ANNUAL REPORT AND ACCOUNTS 2007-2008 55
The prior year Consolidated Cash Flow Statement split between continuing and discontinued operations is as follows:
Group loss after taxation (33.8) (281.3) (315.1)
Depreciation 5.6 0.3 5.9
Software amortisation 1.4 - 1.4
Other amortisation 1.8 - 1.8
Impairment of goodwill 9.2 289.1 298.3
Loss on disposal of business - 0.2 0.2
Write-off of property, plant and equipment 5.1 - 5.1
Share option charge 9.9 (1.7) 8.2
Finance income (1.0) (1.2) (2.2)
Taxation 1.2 0.1 1.3
Operating cash flows before movements in working capital (0.6) 5.5 4.9
Decrease in receivables 1.6 1.0 2.6
Increase/(decrease) in payables 0.4 (6.4) (6.0)
Cash generated by operations 1.4 0.1 1.5
Income tax paid (1.3) - (1.3)
Net cash from operating activities 0.1 0.1 0.2
Purchases of property, plant and equipment (13.5) - (13.5)
Purchases of software (3.6) - (3.6)
Acquisition of subsidiary (3.1) (20.8) (23.9)
Disposals - (14.7) (14.7)
Interest received 1.1 0.5 1.6
Cash used in investing activities (19.1) (35.0) (54.1)
Exercise of share options 0.1 - 0.1
Repayment of borrowings - (10.8) (10.8)
New bank loans raised 5.3 - 5.3
Net cash used in financing activities 5.4 (10.8) (5.4)
Net decreases in cash and cash equivalents in the year (13.6) (45.7) (59.3)
Cash and cash equivalents at beginning of year   97.2
Effect of foreign exchange rate changes   (3.4)
Cash and cash equivalents at end of year   34.5
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
2. COMPARATIVE FIGURES (CONTINUED) 2. COMPARATIVE FIGURES
Continuing 
operations 
£m
Discontinued 
operations
£m
Year ended 31 July 2007
Total 
£m
Amounts wagered 1,096.4 227.1 1,323.5
Net gaming revenue 119.4 33.3 152.7
Administrative expenses excluding exceptional items, share option charge and other amortisation (114.5) (20.6) (135.1)
Group operating profit before exceptional items, share option charge and other amortisation 4.9 12.7 17.6
Other administrative expenses:   
    Exceptional items (26.8) (296.6) (323.4)
    Loss on disposal of fixed assets - (0.2) (0.2)
    Share option charge (9.9) 1.7 (8.2)
    Amortisation of other intangible assets (1.8) - (1.8)
Total administrative expenses (153.0) (315.7) (468.7)
Group operating loss (33.6) (282.4) (316.0)
Finance income 1.2 0.1 1.3
Finance costs (0.2) 1.1 0.9
Loss before taxation (32.6) (281.2) (313.8)
Taxation (1.2) (0.1) (1.3)
Loss for the year (33.8) (281.3) (315.1)
Discontinued operations arose from the 
passing of the UIGEA in the US in October 
2006, and the subsequent decision to 
close the US-facing part of Paradise Poker 
and dispose of the remaining US-facing 
operations. The prior year Group Income 
Statement split between continuing and 
discontinued operations is as follows:
Continuing 
operations 
£m
Discontinued 
operations
£m
Year ended 31 July 2007
Total 
£m WINNING MOMENTS 56 ANNUAL REPORT AND ACCOUNTS 2007-2008 57
Amounts wagered 653.9 439.3 3.2 - 1,096.4 227.1
Net  gaming revenue 103.8 12.4 3.2 - 119.4 33.3
Depreciation (4.3) (0.7) (0.3) (1.7) (7.0) (0.3)
Administrative expenses 
excluding exceptional items, 
share option charge 
and other amortisation (93.0) (7.7) - (6.8) (107.5) (20.3)
Group operating profit before 
exceptional items, share option 
charge and other amortisation 6.5 4.0 2.9 (8.5) 4.9 12.7
Other administrative expenses:      
    Exceptional items (26.8) - - - (26.8) (296.6)
    Share option (charge)/credit (8.4) (1.5) - - (9.9) 1.5
    Other amortisation (1.8) - - - (1.8) -
Total administrative expenses (134.3) (9.9) (0.3) (8.5) (153.0) (315.7)    
Operating profit/(loss) (30.5) 2.5 2.9 (8.5) (33.6) (282.4)
Balance sheet information     
Total assets 96.5 10.0 5.1 - 111.6 -
Total liabilities (33.9) (5.9) - - (39.8) -
Expenditure incurred to  
acquire property, plant  
and equipment and  
intangible assets 16.5 0.6 - - 17.1 -
Amounts wagered 811.6 542.5 10.1 - 1,364.2 -
Net gaming revenue 126.1 19.2 1.7 - 147.0 -
Depreciation (4.0) (0.6) - (1.9) (6.5) -
Administrative expenses 
excluding exceptional items, 
share option charge 
and other amortisation (99.0) (11.3) (2.7) (4.8) (117.8) -
Group operating profit before 
exceptional items, share option  
charge and other amortisation 23.1 7.3 (1.0) (6.7) 22.7 -
Other administrative expenses:      
    Exceptional items (12.0) - - - (12.0) -
    Share option charge (5.8) (1.3) - (0.9) (8.0) -
    Other amortisation (3.9) - - - (3.9) -
Total administrative expenses (124.7) (13.2) (2.7) (7.6) (148.2) -    
Operating profit/(loss) 1.4 6.0 (1.0) (7.6) (1.2) -
Balance sheet information      
Total assets 133.9 13.5 - - 147.4 -
Total liabilities (53.7) (9.3) - - (63.0) -
Expenditure incurred to  
acquire property, plant  
and equipment and  
intangible assets 14.0 1.0 - - 15.0 -
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
For segmental information by activity, 
revenue is attributed to three principal areas 
Sports 
Betting 
£m
Casino 
Gaming 
£m
Poker 
Rake 
£m
Total 
£m
Amounts wagered 1,307.5 36.7 20.0 1,364.2
Net gaming revenue  90.3  36.7 20.0  147.0
Amounts wagered 1,039.1 29.4 27.9 1,096.4
Net gaming revenue 62.1 29.4 27.9 119.4
4. SEGMENT INFORMATION (CONTINUED)
4. SEGMENT INFORMATION 
For management purposes, the Group is 
currently organised into three geographical 
regions – Europe, Australia and Americas. 
These operating divisions are the basis on 
which the Group reports its primary  
segment information.
The following table presents revenue and 
profit information and certain asset and 
liability information regarding the Group’s 
business segments for the years ended 31 
July 2008 and 31 July 2007. 
2008
Continuing 
operations
Discontinued 
operations
Americas 
£m
Total 
£m
Unallocated 
central costs 
£m
Australia 
£m
Europe 
£m
Americas
£m
Sports 
Betting 
£m
Casino 
Gaming 
£m
Poker 
Rake 
£m
Total 
£m
2007
Americas 
£m
Continuing 
operations 
Total 
£m
Unallocated 
central costs 
£m
Australia 
£m
Europe 
£m
Discontinued 
operations 
Americas 
£m
3. NET GAMING REVENUE 
Gaming revenue  160.5 127.3
Promotional bonuses  (13.5) (7.9)
Net gaming revenue  147.0 119.4
31 July 
2008 
£m  
31 July 
2007 
£m  
of activity: sports betting, casino gaming 
and poker. WINNING MOMENTS 58 ANNUAL REPORT AND ACCOUNTS 2007-2008 59
7. SHARE OPTION CHARGE
6. LOSS BEFORE T AXATION
Share option charge  7.6 9.9
Social security costs on share options 0.4 -
 8.0 9.9
2008  
£m
2007  
£m
Net foreign exchange losses   0.1 0.6
Depreciation of property, plant and equipment   3.7 5.6
Amortisation of software   2.8 1.4
Auditors’ remuneration:    
    Audit services   0.4 0.3
    Audit of subsidiaries pursuant to legislation   0.1 0.1 
    Tax services   0.2 0.3
    Corporate finance transactions   - 0.2
Rental income   (0.2) -
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
5. EXCEPTIONAL ITEMS
The following exceptional costs were incurred during the year: Group operating profit before exceptional items, share option charge and amortisation has been arrived at after charging/(crediting):
Continuing 
£m
Continuing 
£m
Notes 
£m
Discontinued 
£m
Discontinued 
£m
2007 
£m
2008 
£m
Reorganisation costs relating to UIGEA (a) 3.3 - 3.3  8.8  5.4 14.2
Transfer of licensable activities to the  
Channel Islands (b) 4.0 - 4.0  5.5  - 5.5
Transfer of EMEA and poker customer services  
operation to Dublin (c)  0.3 - 0.3  1.9  - 1.9
Paradise – Boss migration (d) (0.3) - (0.3)  2.8  - 2.8
PCI DSS compliance (e) - - -  2.4  - 2.4
Impairment of goodwill (Paradise Poker and  
Sportingodds) (f) - - -  9.2  182.3 191.5
Write off of property, plant and equipment (g) - - -  3.1  - 3.1
Reversal of payable from prior year (h) - - -  (6.9)  - (6.9)
Impairment losses relating to the disposal of  
the US business (i) - - -  -  108.9 108.9
Transfer of Spanish customer services operation  
to Dublin (j) 4.7 - 4.7  -  - -
  12.0 - 12.0  26.8  296.6 323.4
(a) The impact of the passing of the 
UIGEA and the subsequent decision to 
close the US-facing part of Paradise 
Poker and dispose of the remaining US-
facing operations resulted in a number of 
reorganisation costs (including redundancies 
and other related costs amounting to £3.1m 
(2007: £7.8m) and retention and loyalty 
payments to retained employees of £0.2m 
(2007: £6.4m)).
(b) The costs relating to the transfer of 
the licensable activities to Alderney and 
Guernsey include redundancy, recruitment, 
training, temporary accommodation and 
other related costs. 
(c) The costs to create the dedicated 
EMEA and poker customer services 
and fraud centre in Dublin comprise 
redundancy, recruitment, training, temporary 
accommodation and other related costs.
(d) Paradise – Boss migration costs 
relating to the migration of Paradise Poker 
players to the Boss Media platform include 
redundancy, one-off migration marketing 
and other related costs.
(e) The payment card industry data 
security standard (PCI DSS) is a mandatory 
requirement driven by the card scheme 
operators. The costs incurred were for 
mobilisation and execution of the PCI 
DSS compliance programme to ensure 
confidentiality and integrity of cardholder 
and other sensitive data. 
(f) Impairment of goodwill represents the 
write-down of Paradise Poker goodwill 
following the passing of the UIGEA and 
consequential US closures. A further write-
down of goodwill in relation to Paradise 
Poker occurred as a result of the migration 
to Boss. In addition, goodwill in relation 
to sportingodds.com was impaired as a  
result of the pending migration to the  
Sportingbet domain.
(g) As a result of the above events Property, 
Plant and Equipment no longer used by the 
continuing business have been written off.
(h) Included in 2007 exceptional items was a 
payable brought forward from the prior year 
which was no longer required of £6.9m.
(i) Impairment losses of £108.9m relate to 
the disposal of the US-facing sports betting 
and casino business which was sold for $1 
on 12 October 2006 to Jazette Enterprises 
Limited. This comprises the impairment of 
goodwill and other assets.
(j) The costs to transfer the Spanish 
language customer services centre to Dublin 
include recruitment, training, temporary 
accommodation costs, one-off marketing, 
the termination payment to the former 
Spanish partner and other related costs.
2008  
£m
2007  
£m WINNING MOMENTS 60 ANNUAL REPORT AND ACCOUNTS 2007-2008 61
Directors’ remuneration  
Salary and fees  1.4 1.5 
Bonuses  0.9 0.8
Compensation for loss of office  1.2 -
Share based payments  1.7 3.6
Total emoluments  5.2 5.9 
Pension contributions  0.2 0.2  
  5.4 6.1
8. ST AFF COSTS
9. NET INTEREST RECEIVABLE/(PAYABLE)
2008  
No.
2008  
£m
2008  
£m
2007  
No.
2007  
£m
2007  
£m
The average monthly number of employees (including executive directors) was:  
Europe  340 300
Australia  74 68
Americas  - 100
  414 468
Employee costs including Directors were as follows:  
Wages and salaries  33.5 40.0
Social security costs  2.2 2.2
Pensions costs  1.2 1.4
  36.9 43.6
Bank loans and overdrafts  (0.4) -
Amortisation of loan arrangement fees  - (0.2)
  (0.4) (0.2)
Interest receivable  0.8 1.2
  0.4 1.0
Further non-statutory disclosures on the remuneration of each individual Director are given in the Remuneration Report. 
The following table sets out Directors’ remuneration. There are no key management personnel other than the Group’s Directors.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
10. T AXATION
The deferred tax asset arose as a result of 
bad debt provisions made during the year. 
This asset is expected to be recovered on 
the basis that the Group is expected to 
generate profits in future years.
The tax charge for the year is higher than the standard UK rate of corporation tax as explained below:
UK deferred tax assets in respect of 
accelerated capital allowances (£638,000) 
and tax losses (£7,196,000) have not 
been recognised on the basis that it is not 
probable that there will be sufficient taxable 
profit in future years against which the 
assets can be recovered.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
2008  
£m
2007  
£m
Note 10(a) Analysis of charge in the period 
Current tax:  
UK corporation tax on profits of the period   1.2 -
Overseas taxation   2.7  1.3
Adjustments to overseas taxation in respect of previous periods   0.3 -
Total current tax (note 10(b))   4.2  1.3
Deferred tax:
Current year movement to deferred tax   (0.7)  -
Total deferred tax (note 10(c))   (0.7)  -
Tax on profit on ordinary activities  3.5  1.3
Note 10(b) Factors affecting the tax charge for the period
Profit on ordinary activities before tax   (0.8)  (313.8)
Profit on ordinary activities multiplied by the   
Standard rate of corporation tax in the UK (28%) (2007: 30%)   (0.2)  (94.1)
Effects of:
Expenses not deductible for tax purposes   4.4  98.1
Effect of lower tax rates on overseas earnings   (3.5)  (3.3)
Tax losses arising in year   2.6 -
Other timing differences   0.6 -
Adjustments to tax charge in respect of previous periods   0.3 -
Current tax charge for the period (note 10(a))   4.2  1.3
Note 10(c) Provision for deferred tax (Deferred tax asset)
Other timing differences   (0.7)  -
Provision for deferred tax at 28% (2007: 30%)   (0.7)  -
At the beginning of the year   -  -
Current year movement   (0.7)  -
At the end of the year (Deferred tax asset)   (0.7)  -
2008  
£m
2007  
£m WINNING MOMENTS 62 ANNUAL REPORT AND ACCOUNTS 2007-2008 63
Cost 
At 1 August 2006   415.1
Additions   19.5
Disposals   (132.3)
Exchange adjustments   (18.1)
Other movements   (38.2)
At 1 August 2007   246.0
Additions   4.7
Exchange movements   0.2
Other movements   3.7
As at 31 July 2008   254.6
Impairment losses 
At 1 August 2006   63.5
Impairments   290.5
Disposals   (132.3)
Exchange adjustments   (20.1)
At 1 August 2007   201.6 
As at 31 July 2008   201.6
Net book value 
At 31 July 2008   53.0
At 31 July 2007   44.4
Continuing 
2007 
Discontinued 
2007 
Total 
2007 
The calculation of basic earnings per share 
is based on the loss on ordinary activities 
after taxation and minority interests 
attributable to shareholders of Sportingbet 
Plc and the weighted average number of 
shares in issue during the year.
Due to the size of non-cash items the Group 
has adjusted its earnings per ordinary share 
to exclude exceptional items, share option 
charge and amortisation.
11. EARNINGS PER SHARE
Loss per ordinary share    
Basic (0.9)p (7.7)p (65.5)p (73.2)p
Diluted (0.9)p (7.7)p (65.5)p (73.2)p
Adjusted earnings per ordinary share
(before exceptional items, share option charge and amortisation)    
Basic 4.3p 1.2p 3.2p 4.4p
Diluted 3.8p 1.1p 2.9p 4.0p
2008 
Basic earnings (4.3) (33.8) (281.3) (315.1)
Exceptional items 12.0 26.8 296.6 323.4
Share option charge 8.0 9.9 (1.7) 8.2
Amortisation 3.9 1.8 - 1.8
Adjusted earnings 19.6 4.7 13.6 18.3
Continuing 
2007 
£m 
Discontinued 
2007 
£m 
Total 
2007 
£m 
2008 
£m 
12. GOODWILL
£m 
Number of shares in issue  472,011,023 432,946,844
Employee share schemes  38,686,358 38,872,648
Contigent consideration  19,187,386 1,934,593
Fully diluted number of shares in issue  529,884,767 473,754,085
Weighted average number of shares in issue  454,244,357  429,655,714
Employee share schemes  38,686,358 38,872,648
Contigent consideration  19,187,386 1,934,593
Fully diluted number of weighted average number of shares in issue  512,118,101  470,462,955
During the year the Group had the following weighted average number of shares in issue and potentially dilutive shares:
As at 31 July 2008 the Group had the following shares in issue and potentially dilutive shares:
11. EARNINGS PER SHARE (CONTINUED)
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
2008  
No.
2007  
No.
2008  
No.
2007  
No. WINNING MOMENTS 64 ANNUAL REPORT AND ACCOUNTS 2007-2008 65
Cost   
At 1 August 2006 13.8 - 13.8
Additions 3.6 5.2 8.8
Disposals (3.4) - (3.4)
At 1 August 2007 14.0 5.2 19.2
Additions 2.8 8.7 11.5
As at 31 July 2008 16.8 13.9 30.7
Amortisation and impairment losses   
At 1 August 2006 6.6 - 6.6
Charge for the year 1.4 1.8 3.2
Disposals (0.9) - (0.9)
At 1 August 2007 7.1 1.8 8.9
Charge for the year 2.8 3.9 6.7
Exchange adjustments (0.1) - (0.1)
As at 31 July 2008 9.8 5.7 15.5
Net book value   
At 31 July 2008 7.0 8.2 15.2
At 31 July 2007 6.9 3.4 10.3
Subsequent to the annual impairment test for 2008, the carrying amount of goodwill is allocated to the following cash 
generating units:
Amortisation of Software is charged to administrative expenses in the Consolidated Income Statement.  Other amortisation 
and impairment losses are charged to other amortisation within other administrative expenses.
13. OTHER INT ANGIBLE ASSETS
Total 
£m
Other 
£m
Software 
£m
Europe  29.6 21.2
Australia  23.4 23.2
  53.0 44.4
The recoverable amounts for the cash 
generating units above are determined 
based on internal discounted cash flow 
evaluation. The cash flow evaluation is 
based on actual operating results and five 
year forecasts at the growth rates stated in 
the key assumptions.
Discount rates for the goodwill impairment 
review are based on company specific 
pre-tax weighted average cost of capital 
percentages and range from 10% to 15%. 
The future cashflows are modelled based 
on budgeted projections, and cash flows 
beyond the budget period are extrapolated 
using a growth rate of 10%. The growth rate 
applied is based on past experience.
The other movements arose as a result 
of changes in the underlying value of the 
amount payable due to movements in the 
price of shares to be issued to satisfy the 
contingent consideration. 
Details of acquisitions in the year are 
set out in note 23. Impairment losses in 
the prior year have been recognised as 
exceptional items as disclosed in note 5.
12. GOODWILL (CONTINUED) 14. PROPERTY , PLANT AND EQUIPMENT
Computer 
equipment 
£m
Motor 
vehicles 
£m
Fixtures, 
fittings and 
equipment 
£m
Freehold 
land and 
buildings 
£m
Total 
£m
Cost     
At 1 August 2006 4.6 0.1 10.1 1.4 16.2
Additions 0.6 - 4.8 8.1 13.5
Disposals (1.0) - (2.7) (1.4) (5.1)
Exchange movements (0.2) - (0.1) (0.1) (0.4)
At 1 August 2007 4.0 0.1 12.1 8.0 24.2
Additions 2.6 - 8.0 1.6 12.2
Exchange movements - - (0.2) - (0.2)
As at 31 July 2008 6.6 0.1 19.9 9.6 36.2
Depreciation     
At 1 August 2006 2.5 0.1 4.5 - 7.1
Charge for the year 0.7 - 5.2 - 5.9
Disposals (0.4) - (0.9) - (1.3)
Exchange adjustments (0.1) - (0.2) - (0.3)
At 1 August 2007               2.7 0.1 8.6 - 11.4
Charge for the year 0.9 - 2.6 0.2 3.7
Exchange adjustments - - 0.1 (0.1) -
As at 31 July 2008 3.6 0.1 11.3 0.1 15.1
Net book value     
At 31 July 2008 3.0 - 8.6 9.5 21.1
At 31 July 2007 1.3 - 3.5 8.0 12.8
The depreciation charge in respect of assets held under finance leases was £nil  (2007: £0.1m).
2008  
£m
2007  
£m
   NOTES TO THE 
FINANCIAL ST ATEMENTS  WINNING MOMENTS 66 ANNUAL REPORT AND ACCOUNTS 2007-2008 67
Bank loans   5.6 5.3
Trade payables  8.9 4.7
Other payables  1.6 1.1
Customer liabilities  13.4 11.4
Tax and social security  4.0 2.4
Accruals and deferred income  23.1 13.0
Contingent consideration  4.5 -
Open Bets  1.8 1.5
  62.9 39.4
Cash  33.6 24.6
Short term cash deposits  13.6 7.1
Restricted cash  2.2 2.8
  49.4 34.5
At 1 August  0.5 0.4
Provision for receivables impairment  2.0 0.8
Receivables written off during the year as uncollectable  (0.6) (0.7)
At 31 July  1.9 0.5
Up to 2 months past due  3.4 2.2
2 to 6 months past due  0.4 0.2
Over 6 months past due  0.1 0.5
  3.9 2.9
Trade receivables  5.9 3.4
Provision for impairment of trade receivables  (1.9) (0.5)
Trade receivables, net  4.0 2.9
Deferred tax asset  0.7 -
Other receivables  2.1 4.3
Prepayments and accrued income  1.4 1.9
  8.2 9.1 
15. TRADE AND OTHER RECEIVABLES
Trade receivables that are less than 30 
days past due are not considered impaired.  
As of 31 July 2008, trade receivables of 
£3.9m (2007: £2.9m) were past due but 
The carrying amounts of the Group’s trade 
receivables are denominated entirely in 
Australian dollars.
The creation and release of provisions for 
impaired receivables have been included 
in “Other administrative expenses” in the 
Income Statement. Amounts charged to the 
allowance account are generally written off, 
when there is no expectation of recovering 
additional cash.  
The other classes within trade and other 
receivables do not contain impaired assets.
not impaired. These relate to a number of 
independent customers for whom there is no 
recent history of default. 
Movements on the Group provision for 
impairment of trade receivables are  
as follows:
Trade receivables are usually due within 30 
days and do not bear any effective interest 
rate. All trade receivables are subject to 
credit risk exposure, however the Group 
does not identify specific concentration of 
credit risk with regards to trade receivables, 
as the amount recognised consists of a  
large number of receivables from  
various customers.
2008
£m
2008
£m
2008
£m
2007
£m
2007
£m
2007
£m
The fair value of these short term financial 
assets is not individually determined 
as the carrying amount is a reasonable 
approximation of fair value.
Non-current receivables relate to £0.5m a 
deposit held by Italian authorities in respect 
of the gaming license held there.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
16. CASH AND CASH EQUIVALENTS 
17. TRADE AND OTHER PAYABLES
Restricted cash includes £1.2m (2007: 
£2.8m) held with Barclays in connection with 
the share capital reduction exercise in 2005 
and £1.0m (2007: £nil) held in designated 
accounts which have certain restrictions. 
Contingent consideration of £4.5m (2007: 
£nil) is owed in respect of the acquisition 
of the business and assets of Belmond 
International Limited.
Although repayable on demand, the Group 
has a bank loan facility of £5.6m which is 
available up to 2012. The Directors do not 
anticipate early repayment. The loan is 
Short term cash deposits consists of 
balances held by payment service providers.  
The effective rates on bank balances and 
short term deposits was £nil (2007: £nil).
secured by a floating charge over the assets 
of the Group, and bears an interest rate of 
1.5% above LIBOR.
The open bets at the year end are within 
the scope of IAS 39 as derivative contracts. 
These bets are held at fair value with 
significant gains and losses recognised in 
revenue. Management’s assessments of the 
exposure to significant changes in fair value 
of open bets is assessed as negligible due 
to the short term exposures to such liabilities 
and the minimal movement on average 
betting odds between the date of bet placing 
and the period end. 
2008
£m
2008
£m
2007
£m
2007
£m
The ageing analysis of these trade 
receivables is as follows: WINNING MOMENTS 68 ANNUAL REPORT AND ACCOUNTS 2007-2008 69
Financial liabilities as per balance sheet  
Trade and other payables 1.8 1.5 47.0 30.2
Interest bearing loans and borrowings - - 5.6 5.3
Provisions - - 0.1 0.3
 1.8 1.5 52.7 35.8
Financial assets as per balance sheet  
Trade and other receivables  6.1 7.2
Cash and cash equivalents  49.4 34.5
  55.5 41.7
2008     
Sterling 16.5 1.5 1.7 2.4 22.1
  16.5 1.5 1.7 2.4 22.1
2007     
Sterling 3.5 2.0 0.4 1.9 7.8
 3.5 2.0 0.4 1.9 7.8
At 1 August 2006    0.7
Fair value adjustment    (0.4)
At 1 August 2007    0.3
Fair value adjustment    (0.2)
At 31 July 2008    0.1
Included in current liabilities    -
Included in non-current liabilities    0.1
    0.1
18. PROVISIONS 19. FINANCIAL INSTRUMENTS (CONTINUED)
19.  FINANCIAL INSTRUMENTS
Chargeback 
provision
The chargeback provision provides for future 
chargebacks on customer deposits made 
The Group uses financial instruments, 
comprising cash and cash equivalents, short 
term borrowings, trade receivables and 
trade payables, which arise directly from its 
operations.
Short term receivables and 
payables
The Group’s trade and other receivables 
are actively monitored to avoid significant 
concentrations of credit risk.
Interest rate risk
The Group finances its operations through a 
mixture of retained profits and bank facilities.  
within the year, and is expected to unwind in 
the next financial year.
Bank borrowings are made using variable 
interest rates. The interest rate risk on the 
Group’s £5.6m bank loan is not considered 
to be significant.
Liquidity risk
The Group seeks to manage financial risk, to 
ensure sufficient liquidity is available to meet 
foreseeable needs and to invest cash assets 
safely and profitably.
Sufficient cash reserves are held to maintain 
short-term flexibility, together with short-
term borrowings.
Credit risk
As explained in the financial review, the 
Group recharges its credit risk, arising from 
credit facilities allowed to certain customers 
in the Australian region, by making 
appropriate credit checks before bets are 
placed and setting credit limits based on  
this information.
Currency risk
The tables below show the extent to which 
Group companies have monetary assets  
and liabilities in currencies other than their 
local currency:
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
Fair values
The fair values of the Group’s financial 
instruments are considered to be equal 
to the book value. As these financial 
instruments are not publicly traded,  
the fair values presented are determined by 
calculating present values of the cash  
flows anticipated until maturity of these 
financial assets. 
Loans and receivables
Financial liabilities at 
amortised cost
Liabilities at fair value 
through the income 
statement
 
Euro
£m
 
US Dollars
£m
Danish 
Krone
£m
 
Total
£m
Other 
Currencies
£m
Net foreign currency monetary assets
Functional currency of operation
2008
£m
2008
£m
2008
£m
2007
£m
2007
£m
2007
£m WINNING MOMENTS 70 ANNUAL REPORT AND ACCOUNTS 2007-2008 71
Authorised:  
1,000m (2007: 1,000m) ordinary shares of 0.1p each  1,000 1,000
Allotted, issued and fully paid:   
At 31 July 2007: 432,946,845 shares of 0.1p each  433 421 
Issues in respect of acquisitions: 25,062,744 shares  25 10
Other share issues in respect of exercised share options: 11,909,203 shares  12 2
Other share issues: 2,092,231 shares  2 -
At 31 July 2008: 472,011,023 shares of 0.1p each   472 433
Foreign currency sensitivity
Sportingbet plc is exposed to market risk 
through its use of financial instruments and 
specifically to currency risk.
Exposures to currency exchange rates arise 
from the Group’s retranslation of its foreign 
subsidiaries as well as the Group’s overseas 
sales and purchases, which are primarily 
denominated in euros and Turkish lira.
The following table illustrates the sensitivity 
of the net result for the year and equity 
with regard to the Group’s financial assets 
and financial liabilities and the euro/sterling 
exchange rate and Turkish lira/sterling rate. 
It assumes a +/- 1.3% movement in the 
sterling/euro exchange rate for the year 
ended 31 July 2008 (2007: 0.1%) and a +/- 
0.7% movement for the sterling/Turkish lira 
exchange rate (2006: 0.4%).  
These percentages have been determined 
based on the average market volatility in 
exchange rates in the previous 12 months.
If sterling had strengthened against the euro 
and Turkish lira by 1.3% (2007: 0.1%) and 
0.7% (2006: 0.4%) respectively then this 
would have had the following impact:
If sterling had weakened against the euro 
and Turkish lira by 1.3% (2007: 0.1%) and  
0.7% (2006: 0.4%) respectively then this 
would have had the following impact:
Exposures to foreign exchange rates vary 
during the year depending on the volume 
of overseas transactions. Nonetheless, 
the analysis above is considered to be 
representative of Sportingbet’s exposure to 
currency risk.
Capital management
In common with many internet companies 
that have few physical assets, the Group 
has no policy as to the level of equity capital 
and reserves other than to address statutory 
requirements. As at 31 July 2008, the Group 
had £5.6m of bank loans which are secured 
on the Group’s land and buildings. Details of 
the Group’s dividend policy are disclosed on 
page 51 of this Annual Report.
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
19.  FINANCIAL INSTRUMENTS (CONTINUED) 20. SHARE CAPIT AL
Shares issued in respect of acquisitions 
represent 23,529,412 shares in respect of 
the acquisition of the business and assets 
of Maslin Properties Limited during the year 
2008
£000
2007
£000
At 31 July 2008 the following share options were outstanding in respect of ordinary shares: 
Date of grant 
Ordinary shares
of 0.1p Period of option
Exercise price 
(p)
September 2002 100,000 September 2005 – September 2009 83
December 2003 1,155,000 December 2006 – December 2010 39.5
January 2004 1,645,625 January 2007 – January 2011 49
February 2004 100,000 February 2007 – January 2011 39.5
May 2004 50,000 May 2007 – May 2011 94
October 2004 100,000 October 2007 – October 2011 97.5
November 2004 160,000 November 2007 – November 2014 131
August 2005 662,250 July 2007 – July 2008 -
May 2006 213,427 November 2007 – November 2009 -
November 2006 18,406,137 November 2007 – November 2009 -
March 2007 869,528 November 2007 – November 2009 -
June 2007 149,190 November 2008 – November 2009 -
November 2007 8,165,675 November 2008 – November 2009 -
December 2007 1,964,540 December 2008 – December 2009 - 
March 2008 2,425,829 November 2008 – November 2009 -
June 2008 2,519,157 November 2009 – November 2011 -
At 31 July 2008 there were 38,686,358 
options or awards over ordinary shares 
outstanding, 7,455,593 of which relate to 
Directors, details of which can be found in 
the Remuneration Report on pages 34 to 39. 
Of the share options detailed above 35,700 
relate to the HMRC Approved Scheme, 
1,955,625 relate to the Executive Scheme, 
1,319,300 relate to the Unapproved 
Scheme, 662,250 relate to the 2005 plan, 
32,535,516 relate to the 2006 Share Plan, 
213,427 relate to conditional awards and 
1,964,540 to discretionary awards to 
Executive Directors.
2008 2007
Net profit   (0.4) (0.3) (0.7) (0.2) (0.1) (0.3)
Equity   (0.4) (0.3) (0.7) (0.2) (0.1) (0.3)
Euro
£m
Turkish Lira
£m
Total
£m
Euro
£m
Turkish Lira
£m
Total
£m
2008 2007
Net profit   0.4 0.3 0.7 0.2 0.1 0.3
Equity   0.4 0.3 0.7 0.2 0.1 0.3
Euro
£m
Turkish Lira
£m
Total
£m
Euro
£m
Turkish Lira
£m
Total
£m
ended 31 July 2007 and 1,533,332 shares 
issued in respect of the Sportingbet Italia 
S.p.A. acquisition in prior years. WINNING MOMENTS 72 ANNUAL REPORT AND ACCOUNTS 2007-2008 73
22. SHARE-BASED PAYMENTS
21. EQUITY 22. SHARE-BASED PAYMENTS (CONTINUED)
The movement in Group equity of £12.3m 
(2007: £(306.8)m) is wholly represented by 
the movements shown in equity reserves and 
share capital in Notes 21 and 20. 
The Company operates five equity-settled 
share-based remuneration schemes for 
employees across the Group, as listed 
in Note 20. All employees are eligible to 
The movement in shares to be issued 
of £5.6m represents a combination of 
settlement of consideration in relation 
to historic acquisitions of £(9.2)m and 
participate in these schemes, the vesting 
conditions being that the individual still 
remains in employment at the date of the 
release of the option and in respect of the 
2005 and 2006 share plans satisfies certain 
performance criteria. The terms of these 
schemes are discussed in more detail in the 
remuneration report.
Shares
to be
issued
£m
Share
premium
account
£m
Issued
share
capital
£m
Profit and
loss
account
£m
Foreign
Exchange
Reserve
£m
At 1 August 2006  0.4 38.0 24.0 323.2 (6.8)
Acquisitions  - 4.8 (9.4) - -
Employee share options  - 0.1 - - -
Share option charge  - - - 8.2 -
Loss for the year  - - - (312.0) -
Other movements  - - - (0.1) -
Foreign currency exchange  - - - - 4.2
At 1 August 2007  0.4 42.9 14.6 19.3 (2.6)
Prior year adjustment  - - - (2.5) -
At 1 August 2007 (restated)  0.4 42.9 14.6 16.8 (2.6)
Acquisitions  0.1 13.4 (5.6) - -
Share option charge  - - - 7.6        -
Loss for the year  - - - (4.3) -
Foreign currency exchange  - - - - 1.1
At 31 July 2008  0.5 56.3 9.0 20.1 (1.5)
consideration in respect of current year 
acquisitions of £3.6m.
 
 
 
No.
 
 
 
No.
weighted 
average 
exercise price 
(p)
weighted 
average 
exercise price 
(p)
2007 2008
Outstanding at the beginning of the year 3.7 40,271,306 45.0 14,309,125
Granted during the year - 15,996,714 - 37,180,636
Forfeited during the year - - 43.0 (1,425,000)
Exercised during the year 0.4 (11,909,203) 9.0 (1,687,875)
Lapsed during the year 7.1 (5,672,460) 52.0 (8,105,579)
Outstanding at the end of the year 2.7 38,686,357 4.0 40,271,307
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
The exercise price of options outstanding at 
the end of the year ranged between 0p and 
131p (2007: 0p and 131p) and their weighted 
average contractual life was 455 days (2007: 
758 days).
Of the total number of options outstanding 
at the end of the year, 3,310,625 (2007: 
3,257,375) had vested and were exercisable.
The weighted average share price (at the 
date of exercise) of options exercised during 
the year was 44.2p (2007: 44.5p).
The weighted average fair value of each 
option granted during the year was 44.27p 
(2007: 44.02p).
The following information is relevant in the 
determination of the fair value of options 
granted during the year under the equity-
and cash-settled share-based remuneration 
schemes operated by Sportingbet Plc.
2008 2007
Equity-settled  
Options pricing model used Black-Scholes Black-Scholes
Weighted average share price at grant date (pence) 44.27p 44.02p
Exercise price (pence) nil nil
Weighted average contractual life (days) 555 850
Equity-settled  
Expected volatility 50% 50%
Expected dividend growth rate 2% 2%
Risk-free interest rate 5% 5%
The volatility assumption, measured at the 
standard deviation of expected share price 
returns, is based on a statistical analysis of 
daily share prices over the last three years.
The share-based remuneration expense comprises:  
Equity-settled schemes  8.0 9.9
2008
£m
2007
£m WINNING MOMENTS 74 ANNUAL REPORT AND ACCOUNTS 2007-2008 75
Intangible assets - 8.7 8.7
Net assets - 8.7 8.7
Consideration   12.7
Net assets acquired (100%)   (8.7)
Goodwill arising on acquisition   4.0
23. ACQUISITIONS 
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
Belmond International Limited
On 4 March 2008 the Group acquired 
the business and assets of Belmond 
International Limited, the Group’s Bulgarian 
marketing partner. In calculating the goodwill 
arising on acquisition, the fair value of the 
net assets acquired has been assessed and 
adjustments from book value have been 
Fair value
to Group
Provisional
£m
Fair value
Adjustment
 
£m
Book value
on 
acquisition
£m
Adjustments have been made to the carrying 
value of the intangible assets acquired to 
reflect the value of the Belmond International 
Limited marketing contract.
The goodwill arising on the acquisition 
is largely attributable to the anticipated 
incremental revenue and cost synergies  
in Bulgaria.
Cash    4.0
Contingent consideration – cash   5.1
Contingent consideration – shares   3.6 
   12.7
The fair value of consideration as at 4 March 2008 and at 31 July 2008 comprised:
Contingent consideration payments due to 
the vendor will be satisfied by the payment 
of a fixed amount of cash and the issue of 
a fixed number of shares, based on profit 
performance within the period ending 31 
August 2009.  
The fair value of this consideration is based 
on management’s best estimate of the  
likely outcome.
The Bulgarian business contributed £3.2m to 
the Group’s net gaming revenue and £3.0m 
to profit before tax for the period between 4 
March 2008 and 31 July 2008.
If the acquisition of the Bulgarian business 
had been completed on the first day of the 
financial year, Group net gaming revenue for 
the period would have been £147.0m and 
Group loss attributable to equity holders of 
the parent would have been £4.0m.
made where necessary. These adjustments 
are summarised below:
24. COMMITMENTS UNDER OPERATING LEASES 
25. RELATED PARTIES 
26. CONTINGENT LIABILITIES  
Minimum lease payments under operating leases recognised as an expense for the year
Land and buildings  1.9 1.7
Land and buildings  
Within 1 year  1.5 1.7
Within 2-5 years inclusive  3.2 3.7
In more than 5 years  1.1 1.4 
  5.8 6.8
At 31 July 2008, the Group had outstanding 
commitments for future minimum lease 
payments under non-cancellable operating 
leases, which fall due as follows:
During the period, prior to his appointment 
as Chairman and Non-Executive Director on 
1 February 2008, P Dicks received £60,000 
(2007: £100,000) in consultancy fees.
S O’Connor (Senior Independent Non-
Executive Director) provided marketing 
consultancy services to the Group 
amounting to £nil (2007: £14,167) via Trillium 
Venture Developments Limited.
Operating lease payments represent  
rentals payable by the Group for office 
property costs.
From time to time the Group is subject to 
legal claims and actions. The Group takes 
legal advice as to the likelihood of success 
of the claims and actions and no provision or 
disclosure is made where the Directors feel, 
based on that advice, that action is unlikely 
to result in a material loss or a sufficiently 
reliable estimate of the potential obligation 
cannot be made. 
As part of the ongoing operational risk 
assessment process adopted by the 
Group, there is continued monitoring of 
the legal and regulatory developments 
and their potential impact on the business. 
Appropriate advice continues to be taken in 
respect of these developments.
As noted within the regulatory developments 
section (pages 40 to 42) there have been 
certain adverse regulatory developments 
within Turkey and parts of Europe. In 
addition, the Group as a whole has been 
impacted by the enactment of the Unlawful 
Internet Gambling Enforcement Act in the 
US, in October 2006. Although the Group 
has ceased taking bets from US resident 
customers potentially there remains a 
residual risk associated with the Group’s 
historic US transactions.
There is uncertainty as to what actions, 
if any, may occur from the above noted 
events, and any impact such action may 
have on the Group. However, the Board 
does not consider it probable that a material 
liability or a material impairment in the 
carrying value of assets will arise as a result 
of any potential action.
£m
2008
£m
2008
£m
2007
£m
2007
£m WINNING MOMENTS 76 ANNUAL REPORT AND ACCOUNTS 2007-2008 77
Amounts wagered  1,096.4 - 1,096.4 - - 1,096.4
      
Net gaming revenue  119.4 - 119.4 - - 119.4
      
Administrative expenses excluding exceptional 
items, share option charge and other amortisation  (112.0) (2.5) (114.5) - - (114.5)
      
Group operating profit before exceptional 
items, share option charge and other amortisation  7.4 (2.5) 4.9 - - 4.9
Other administrative expenses:  
Exceptional items   (26.8)  -  (26.8)  - -  (26.8) 
Share option charge   (9.9) - (9.9) - - (9.9)
Other amortisation  (3.0) - (3.0) - 1.2 (1.8)
Total administrative expenses  (151.7) (2.5) (154.2) - 1.2 (153.0)
      
Group operating (loss)/profit  (32.3) (2.5) (34.8) - 1.2 (33.6)
      
Finance income  1.2 - 1.2 - - 1.2
Finance costs  (0.2) - (0.2) - - (0.2)
Loss before taxation  (31.3) (2.5) (33.8)  1.2 (32.6)
      
Taxation  (1.2) - (1.2) - - (1.2)
Loss for the year  (32.5) (2.5) (35.0) - 1.2 (33.8)
      
Discontinued loss for the year  (280.4) - (280.4) (0.3) (0.6) (281.3)
Group loss for the year  (312.9) (2.5) (315.4) (0.3) 0.6 (315.1)
      
Minority interest  0.6 - 0.6 - - 0.6
      
Loss attributable to the equity holders of the parent (312.3) (2.5) (314.8) (0.3) 0.6 (314.5)
27. IMPACT OF THE ADOPTION OF INTERNATIONAL FINANCIAL 
REPORTING ST ANDARDS
From the year ended 31 July 2008 
Sportingbet Plc will prepare its financial 
statements in accordance with IFRS.  
This note has been prepared to illustrate 
differences that have arisen through 
preparation of the financial statements under 
IFRS rather than UK GAAP .  
Below are the reconciliations of the UK 
GAAP balance sheet to their IFRS balance 
sheet at 1 August 2006 (the “opening 
balance sheet”) and 31 July 2007 together 
with reconciliations of the Group UK GAAP 
income statement to its IFRS income 
statement for the year ended 31 July 2007.
The changes as a result of the transition 
to IFRS and of adopting the IFRS Group 
accounting policies are described below.  
In addition to these changes there are 
a number of other assets and liabilities 
that are classified differently under IFRS.  
These reclassifications are shown in the 
reconciliations below. 
Restatement of Prior Year UK 
GAAP Income Statement and 
Balance Sheet
Following a review of internal control 
processes, the prior year UK GAAP Balance 
Sheet has been restated by £2.5m resulting 
in the loss for the year being increased by 
the same amount to £315.1m.
First-Time Application
In accordance with IFRS 1 the Group 
is entitled to a number of voluntary and 
mandatory exemptions from full restatement.  
The following exemption has been adopted:
IFRS 3 Business Combinations has •	
not been applied to acquisitions of 
subsidiaries or of interests in associates 
and joint ventures that occurred prior to  
1 August 2006.
IAS 32 Financial Instruments
Under IAS 32, changes in the fair value of 
derivative financial instruments that do not 
qualify for hedge accounting are recognised 
in the income statement as they arise. At 
1 August 2006, the Group held an interest 
rate swap which was settled during the year 
ended 31 July 2007. Under UK GAAP , the 
gain was only taken to the income statement 
once realised. Under IFRS, the unrealised 
gain is recognised in the income statement.
The Group may have, at any point in time, 
an exposure on open betting positions.  
These bets meet the definition of a financial 
derivative under IAS 32 and therefore are 
recorded at fair value with gains or losses 
recognised in the income statement. Sports 
betting net gaming revenue is adjusted for 
the fair market value of gains and losses on 
open betting positions.
IAS 38 Software classification
Software is typically included within other 
intangibles under IFRS rather than tangible 
assets under UK GAAP . The impact of this 
is to reclassify software from tangible assets 
to intangible assets.  Total net assets are not 
affected by this adjustment.
IFRS 3 Business Combinations
The Group has elected not to apply IFRS 3 
retrospectively to business combinations 
that took place before 1 August 2006, 
therefore goodwill is stated in the opening 
balance sheet at £351.6m, being its UK 
GAAP carrying value.
Subsequent amortisation of £6.6m has 
been reversed leading to a net increase in 
operating profit of £3.0m after subsequent 
impairment for the year ended 31 July 2007.
The Group has adopted IFRS 3 in full for the 
year ended 31 July 2008. This has resulted 
in the recognition of additional intangible 
assets of £3.5m during the year ended 31 
July 2007, which, under UK GAAP , would 
have been recognised in goodwill.
IAS 7 Cash Flow statements
There are no significant adjustments 
between the cash flow statements produced 
under IFRS as against UK GAAP .
Reconciliation of UK GAAP to IFRS income statement for the year ended 31 July 2007
 
IAS 32
Financial
Instruments
£m
 
IFRS 
income
Statement
£m
UK GAAP
(IFRS format)
As originally 
stated
£m
Restatement 
of prior  
year UK 
GAAP 
£m
UK GAAP
(IFRS 
format)
Restated
£m
IFRS 3
Business
Combi-
nations
£m
27. IMPACT OF THE ADOPTION OF INTERNATIONAL FINANCIAL 
REPORTING ST ANDARDS (CONTINUED)
   NOTES TO THE 
FINANCIAL ST ATEMENTS  WINNING MOMENTS 78 ANNUAL REPORT AND ACCOUNTS 2007-2008 79
Non-current assets
Goodwill 351.6 - - 351.6
Other intangible assets - 7.2 - 7.2
Property, plant and equipment 24.4 (7.2) - 17.2
 376.0 - - 376.0
Current assets    
Trade and other receivables 21.9 - 0.3 22.2
Cash and cash equivalent 97.2 - - 97.2
 119.1 - 0.3 119.4
Current liabilities    
Interest bearing loans and borrowings (10.5) - - (10.5)
Contingent consideration (17.9) - - (17.9)
Other payables (67.9) - - (67.9)
 (96.3) - - (96.3)
Net current assets 22.8 - 0.3 23.1
Non current liabilities    
Provisions (1.7) - - (1.7)
Contingent consideration (18.8) - - (18.8)
 (20.5) - - (20.5)
Net assets 378.3 - 0.3 378.6
Equity    
Issued share capital 0.4 - - 0.4
Shares to be issued 24.0 - - 24.0
Share premium 38.0 - - 38.0
Retained earnings 322.9 - 0.3 323.2
Foreign exchange reserve (6.8) - - (6.8)
Equity attributable to equity holders of the parent 378.5 - 0.3 378.8
Minority interest (0.2) - - (0.2)
Total equity 378.3 - 0.3 378.6
Non-current assets       
Goodwill 45.8 - 45.8 - - (1.4) 44.4
Other intangible assets - - - - 6.8 3.5 10.3
Property, plant and equipment 19.6 - 19.6 - (6.8) - 12.8
 65.4 - 65.4 - - 2.1 67.5
Current assets       
Trade and other receivables 9.6 - 9.6 - - - 9.6
Cash and cash equivalents 37.0 (2.5) 34.5 - - - 34.5
 46.6 (2.5) 44.1 - - - 44.1
Current liabilities       
Interest bearing loans and borrowings (5.3) - (5.3) - - - (5.3)
Other payables (33.2) - (33.2) (0.9) - - (34.1)
 (38.5) - (38.5) (0.9) - - (39.4)
       
Net current assets 8.1 (2.5) 5.6 (0.9) - - 4.7  
     
Non current liabilities       
Provisions (1.2) - (1.2) 0.9 - - (0.3)
Contingent consideration (1.0) - (0.1) - - - (0.1)
 (1.3) - (1.3) 0.9 - - (0.4)
       
Net assets 72.2 (2.5) 69.7 - - 2.1 71.8
       
Equity       
Issued share capital 0.4 - 0.4 - - - 0.4
Shares to be issued 13.0 - 13.0 - - 1.6 14.6
Shares premium 42.9 - 42.9 - - - 42.9
Retained earnings 18.8 (2.5) 16.3 - - 0.5 16.8  
Foreign exchange reserve (2.6) - (2.6) - - - (2.6) 
Equity attributable to equity 
holders of the parent 72.5 (2.5) 70.0 - - 2.1 72.1
Minority interest (0.3) - (0.3) - - - (0.3)
Total equity 72.2 (2.5) 69.7 - - 2.1 71.8
27. IMPACT OF THE ADOPTION OF INTERNATIONAL FINANCIAL 
REPORTING ST ANDARDS (CONTINUED)
Reconciliation of UK GAAP to IFRS balance sheet at 1 August 2006 Reconciliation of UK GAAP to IFRS balance sheet at 31 July 2007
IAS 38 
Software  
Classification 
£m
IFRS 
Balance 
Sheet 
£m
UK GAAP 
(IFRS 
format) 
£m
IAS 32 
Financial 
Instruments 
£m
27. IMPACT OF THE ADOPTION OF INTERNATIONAL FINANCIAL 
REPORTING ST ANDARDS (CONTINUED)
   NOTES TO THE 
FINANCIAL ST ATEMENTS 
IAS 38
Software
Classification
£m
IAS 16 
Provision 
Classification 
£m
PY
Restatement 
£m
UK GAAP
(IFRS format) 
 Restated  
£m
UK GAAP
(IFRS format)
£m
IFRS 3
Goodwill
£m
IFRS
Balance
Sheet
£m WINNING MOMENTS 80 ANNUAL REPORT AND ACCOUNTS 2007-2008 81
Fixed assets    
Investments 4 51.3 45.4
  51.3 45.4
Current assets
Debtors 5 42.2 34.3
Cash at bank and in hand 6 1.2 2.8
  43.4 37.1
Creditors – amounts falling due within one year 7 (12.5) (6.8)
Net current assets  30.9 30.3
Provisions for liabilities 8 - (0.7)
Net assets  82.2 75.0
Shareholders’ funds    
Issued share capital 9 0.5 0.4
Shares to be issued 10 7.5 13.0
Share premium 10 54.9 42.9
Retained earnings 10 19.3 18.7
Equity shareholders’ funds  82.2 75.0
   PARENT COMPANY 
BALANCE SHEET  
AS AT 31 JUL Y 2008
2008 
£m 
Notes 
£m
2007 
£m  
The Notes on pages 82 to 95 form part of 
these financial statements. These financial 
statements were approved by the Board and 
authorised for issue on 15 October 2008.
A McIver  
Director 
   PARENT COMPANY INDEPENDENT 
AUDITOR’S REPORT  
TO THE SHAREHOLDERS OF SPORTINGBET PLC
We have audited the Parent Company 
financial statements of Sportingbet Plc 
for the year ended 31 July 2008 which 
comprise the principal accounting policies, 
the balance sheet and notes 1 to 10. These 
Parent Company financial statements have 
been prepared under the accounting policies 
set out therein.
We have reported separately on the Group 
financial statements of Sportingbet Plc for 
the year ended 31 July 2008. That report  
is modified by the inclusion of an emphasis  
of matter.
This report is made solely to the Company’s 
members, as a body, in accordance with 
Section 235 of the Companies Act 1985. 
Our audit work has been undertaken so that 
we might state to the Company’s members 
those matters we are required to state to 
them in an auditor's report and for no other 
purpose. To the fullest extent permitted 
by law, we do not accept or assume 
responsibility to anyone other than the 
company and the Company’s members as 
a body, for our audit work, for this report, or 
for the opinions we have formed.
Respective responsibilities of 
directors and auditors
The Directors' responsibilities for preparing 
the Annual Report, and the Parent Company 
financial statements in accordance with 
United Kingdom law and United Kingdom 
Accounting Standards (United Kingdom 
Generally Accepted Accounting Practice) 
are set out in the Statement of Directors' 
Responsibilities.
Our responsibility is to audit the Parent 
Company financial statements in 
accordance with relevant legal and 
regulatory requirements and International 
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether 
the Parent Company financial statements 
give a true and fair view and whether the 
Parent Company financial statements have 
been properly prepared in accordance with 
the Companies Act 1985.  
We also report to you whether in our opinion 
the Directors' Report is consistent with the 
Parent Company financial statements.
In addition we report to you if, in our opinion, 
the company has not kept proper accounting 
records, if we have not received all the 
information and explanations we require for 
our audit, or if information specified by law 
regarding directors' remuneration and other 
transactions is not disclosed. 
We read other information contained in the 
Annual Report and consider whether it is 
consistent with the audited Parent Company 
financial statements. This other information 
comprises only the Chief Executive's 
statement, Business Review, Chairman's 
Statement, Financial Review, Corporate 
Social Responsibility Statement, Corporate 
Governance Statement, Directors' Report, 
Remuneration Report and Regulatory 
Developments. We consider the implications 
for our report if we become aware of 
any apparent misstatements or material 
inconsistencies with the Parent Company 
financial statements. Our responsibilities do 
not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance 
with International Standards on Auditing 
(UK and Ireland) issued by the Auditing 
Practices Board. An audit includes 
examination, on a test basis, of evidence 
relevant to the amounts and disclosures in 
the Parent Company financial statements.  
It also includes an assessment of the 
significant estimates and judgments made 
by the directors in the preparation of the 
Parent Company financial statements, 
and of whether the accounting policies 
are appropriate to the company's 
circumstances, consistently applied and 
adequately disclosed.
We planned and performed our audit so as 
to obtain all the information and explanations 
which we considered necessary in order 
to provide us with sufficient evidence to 
give reasonable assurance that the Parent 
Company financial statements are free from 
material misstatement, whether caused by 
fraud or other irregularity or error. In forming 
our opinion we also evaluated the overall 
adequacy of the presentation of information 
in the Parent Company financial statements.
Emphasis of matter -  
regulatory uncertainty
In forming our opinion on the financial 
statements, which is not qualified, we 
have considered the accuracy of, and 
draw attention to, the disclosures made 
in Note 11 regarding the implications of, 
and uncertainties arising from, regulatory 
developments concerning on-line gambling 
and related activities in the United States, 
Turkey and parts of Europe. There is 
uncertainty as to the impact of such 
regulatory developments may have on the 
company. Note 11 includes a statement that 
the Board does not consider it probable 
that a material liability or impairment in the 
carrying value of assets will arise as a result 
of any potential action.
Opinion
In our opinion:
The Parent Company financial statements •	
give a true and fair view, in accordance 
with United Kingdom Generally Accepted 
Accounting Practice, of the state of the 
company's affairs as at 31 July 2008;
The Parent Company financial statements •	
have been properly prepared in 
accordance with the Companies Act 
1985; and 
The information given in the  •	
Directors' Report is consistent with  
the financial statements.
 
GRANT THORNTON UK LLP 
REGISTERED AUDITOR 
CHARTERED ACCOUNTANTS 
London
15 October 2008 WINNING MOMENTS 82 ANNUAL REPORT AND ACCOUNTS 2007-2008 83
Investment in subsidiary undertakings  
As at 1 August 2007 45.4
Acquisitions 0.7
Revaluations (0.2)
Options issued to employees of subsidiary undertakings 5.4
 51.3 
Interactive Sports (CI) Limited Online betting Alderney
Sportingbet (Germany) Limited  Online betting England
Interactive Sports Limited Online betting England
Sportingbet Australia Pty Limited Online and telephone betting Australia
Internet Opportunity Entertainment Limited Online betting Antigua & Barbuda
Platinum Management Advisors S.A. Administrative services Costa Rica
Sporting Odds Limited Online betting England
MLB Limited Contract Call Centre Ireland 
Anfield Limited Investment holding company B.V.I.
SB (Properties) Guernsey Limited Investment property holding company Guernsey
Sportingbet (Management Services) Limited Administrative services England
Sportingbet (IT Services) Limited Software development and IT related services England
Sportingbet (Product Services) Limited Market research, project management and web  
 design services England
   NOTES TO THE PARENT COMPANY 
FINANCIAL STATEMENTS  
1. PARENT COMPANY ACCOUNTING POLICIES
2. LOSS AFTER T AX
The unconsolidated financial statements 
for the Company have been prepared in 
accordance with UK law and applicable UK 
GAAP accounting standards.  
The principal accounting policies are 
summarised below. They have all been 
applied consistently throughout the financial 
year and the preceding year.  
The following principal accounting policies 
have been applied:
Exemptions
The Directors have taken advantage of  
the exemption available under section  
230 of the Companies Act 1985 and  
not presented a profit and loss for the 
Company alone. The Company is also 
exempt from the requirement under  
Financial Reporting Standard 1 (Revised) 
“Cash Flow Statements” to prepare a 
cash flow statement as its cashflows 
are consolidated in the Group financial 
statements of Sportingbet plc.
Valuation of investments
Investments held as fixed assets are stated 
at cost less any provision for impairment.
Leased assets
Assets held under finance leases and other 
similar contracts, which confer rights and 
obligations similar to those attached to 
owned assets, are capitalised as tangible 
fixed assets and are depreciated over the 
shorter of the lease terms and their useful 
lives. The capital elements of future lease 
obligations are recorded as liabilities, while 
the interest elements are charged to the 
profit and loss account over the period of 
the leases to produce a constant rate of 
charge on the balance of capital repayments 
outstanding. Hire purchase transactions are 
dealt with similarly, except that assets are 
depreciated over their useful lives. 
Rentals under operating leases are  
charged on a straight-line basis over the 
lease term, even if the payments are not 
made on such a basis. Benefits received 
and receivable as an incentive to sign an 
operating lease are similarly spread on 
a straight-line basis over the lease term, 
except where the period to the review date 
on which the rent is first expected to be 
adjusted to the prevailing market rate is 
shorter than the full lease term, in which 
case the shorter period is used. 
Pension costs
For defined contribution schemes the 
amount charged to the profit and loss 
account in respect of pension costs 
and other post-retirement benefits is 
the contributions payable in the period.  
Differences between contributions payable 
in the year and contributions actually paid 
are shown as either accruals or prepayments 
in the balance sheet. 
Share based employee 
remuneration
Where share options are awarded to 
employees, the fair value of the options at 
the date of grant is charged to the profit 
and loss account over the vesting period.  
Non-market vesting conditions are taken 
into account by adjusting the number of 
equity instruments expected to vest at 
each balance sheet date so that, ultimately, 
the cumulative amount recognised over 
the vesting period is based on the number 
of options that eventually vest. Market 
vesting conditions are factored into the fair 
value of the options granted. As long as 
all other vesting conditions are satisfied, 
a charge is made irrespective of whether 
the market vesting conditions are satisfied. 
The cumulative expense is not adjusted for 
failure to achieve a market vesting condition.
Where the terms of the options are modified 
before they vest, the increase in the fair 
value of the options, measured immediately 
before and after the modification, is also 
charged to the profit and loss account over 
the remaining vesting period.
Where equity instruments are granted to 
persons other than employees, the profit and 
loss account is charged with the fair value of 
goods and services received. 
Further descriptions of the Group’s share-
based payment plans are given in note 22 of 
the Group financial statements.
Financial liabilities and equity
Financial liabilities and equity are classified 
according to the substance of the financial 
instrument’s contractual obligations, rather 
than the financial instrument’s legal form.
3. ST AFF COSTS
4. INVESTMENTS
2008 
£m
2007 
£m
Employee costs including Directors were as follows:  
Wages and salaries  3.7  6.8 
Social security costs  0.2 0.2 
Pensions costs  0.3 0.2  
  4.2  7.2
During the year 5 employees were employed 
by the Company (2007: 5).
Acquisitions of subsidiaries are stated net of adjustments arising for discounting of contingent consideration.  
The following principal trading subsidiaries were wholly owned at 31 July 2008:
There were 2 (2007: 3) Directors in the 
Company’s defined contribution pension 
scheme. Further non statutory disclosures 
on the remuneration of each individual 
Shares in Subsidiary 
undertakings £m  
Country of 
incorporation or 
registration Activity Directly owned
Director are given in the Remuneration 
Report of the Group’s financial statements.
Company loss after tax for the year 
amounted to £6.9m. Audit fees for the 
company were borne by other members of 
the group and are disclosed in the notes to 
the consolidated financial statements. WINNING MOMENTS 84 ANNUAL REPORT AND ACCOUNTS 2007-2008 85
Authorised:  
1,000m (2007: 1,000m) ordinary shares of 0.1p each  1,000 1,000
Allotted, issued and fully paid:  
At 31 July 2007:  432,946,845 shares of 0.1p each  433 421 
Issues in respect of acquisitions: 25,062,744 shares  25 10
Issues in respect of exercised share options: 11,909,203 shares  12 2
Other share issues: 2,092,231 shares  2 -
At 31 July 2008: 472,011,023 shares of 0.1p each    472 433
At 1 August 2007 0.1 0.6 0.7
Charged to the profit and loss account - 0.5 0.5
Reclassified as current liabilities - (1.1) (1.1)
Released in the year (0.1) - (0.1)
At 31 July 2008 - - -
Bank loans  5.6 5.3
Accruals and deferred income  2.4 1.5
Contingent consideration  4.5 -
  12.5 6.8
Restricted cash  1.2 2.8
  1.2 2.8
Other debtors  0.3 -
Prepayments and accrued income  0.1 0.1
Owed by subsidiary undertakings  41.8 34.2
  42.2 34.3
For all undertakings listed above, the country 
of incorporation is the same as the country 
of operation, except Sportingbet (Germany) 
Limited which operates in Austria. 
The Company acquired a further 10% 
shareholding in Sportingbet Italia S.p.A. 
(‘Sportingbet Italia’) during the year taking 
the total shareholding to 100%. Sportingbet 
Italia is incorporated in Italy and its principal 
5. DEBTORS
6. CASH AT BANK AND IN HAND 
7. CREDITORS – AMOUNTS FALLING DUE WITHIN ONE YEAR 
2008  
£m
2008  
£m
2008  
£m
2007  
£m
2007  
£m
2007  
£m
The Company has agreed to provide its 
subsidiary undertakings with such financial 
support as is necessary to enable the 
Restricted cash represents £1.2m  
(2007: £2.8m) held with Barclays in 
connection with the share capital reduction 
exercise in 2005. 
Contingent consideration of £4.5m (2007: 
£nil) relates to amounts owed in respect of 
the acquisition of the business and assets of 
Belmond International Limited.
subsidiaries to continue to trade and meet 
their obligations to third party creditors as 
and when they fall due.
Although repayable on demand, the bank 
loan facility of £5.6m does not end until 2012 
and the directors do not anticipate early 
repayment. The loan is secured by a floating 
charge over the assets of the Company.
4. INVESTMENTS (CONTINUED) 8. PROVISIONS
9. SHARE CAPIT AL
Shares issued in respect of acquisitions 
represent 23,529,412 shares in respect of 
the acquisition of the business and assets 
of Maslin Properties Limited and 1,533,332 
shares issued in respect of the Sportingbet 
Italia S.p.A. acquisition.
Total 
£m
Long Term 
Incentive 
Plan 
£m
Contingent 
consideration 
£m
2008  
£000
2007  
£000
   NOTES TO THE PARENT COMPANY 
FINANCIAL STATEMENTS  
activity is online and telephone betting.  
In the prior year the Company was treated 
as a subsidiary undertaking with a 10% 
minority interest. WINNING MOMENTS 86 ANNUAL REPORT AND ACCOUNTS 2007-2008 87
9. SHARE CAPIT AL (CONTINUED) 
At 31 July 2008 the following share  
options were outstanding in respect of 
ordinary shares: 
At 31 July 2008 there were 38,686,358 
options or awards over ordinary shares 
outstanding, 5,536,363 of which relate to 
Directors, details of which can be found in 
the Remuneration Report on pages 34 to 39. 
Exercise price 
(p) Period of option
Ordinary shares 
of 0.1p
Date of grant
September 2002 100,000 September 2005 – September 2009 83
December 2003 1,155,000 December 2006 – December 2010 39.5
January 2004 1,645,625 January 2007 – January 2011 49
February 2004 100,000 February 2007 – January 2011 39.5
May 2004 50,000 May 2007 – May 2011 94
October 2004 100,000 October 2007 – October 2011 97.5
November 2004 160,000 November 2007 – November 2014 131
August 2005 662,250 July 2007 – July 2008 -
May 2006 213,427 November 2007 – November 2009 -
November 2006 18,406,137 November 2007 – November 2009 -
March 2007 869,528 November 2007 – November 2009 -
June 2007 149,190 November 2008 – November 2009 -
November 2007 8,165,675 November 2008 – November 2009 -
December 2007 1,964,540 December 2008 – December 2009 -
March 2008 2,425,829 November 2008 – November 2009 -
June 2008 2,519,157 November 2009 – November 2011 -
Of the share options detailed above 35,700 
relate to the HMRC Approved Scheme, 
1,955,625 relate to the Executive Scheme, 
1,319,300 relate to the Unapproved Scheme, 
662,250 relate to the 2005 plan, 32,535,516 
The movement in Company shareholders’ 
funds of £6.9m (2007: £(306.0)m) is wholly 
represented by the movements shown in 
reserves and share capital in Notes 8  
and 9. 
From time to time the Company is subject 
to legal claims and actions. The Company 
takes legal advice as to the likelihood of 
success of the claims and actions and no 
provision or disclosure is made where the 
Directors feel, based on that advice, that 
action is unlikely to result in a material loss 
or a sufficiently reliable estimate of the 
potential obligation cannot be made.
As part of the ongoing operational risk 
assessment process adopted by the Group, 
of which the Company is a member, there 
is continued monitoring of the legal and 
regulatory developments and their potential 
impact on the business. Appropriate advice 
continues to be taken in respect of  
these developments.
The movement in shares to be issued 
of £5.5m represents a combination of 
settlement of consideration in relation 
to historic acquisitions of £(9.2)m, 
consideration in respect of current year 
As noted within the regulatory developments 
section of the Group’s financial statements, 
there have been certain adverse regulatory 
developments within Turkey and parts of 
Europe. In addition, the Group as a whole 
has been impacted by the enactment of 
the Unlawful Internet Gaming Enforcement 
Act in the US, in October 2006. Although 
the Group has ceased taking bets from US 
resident customers potentially there remains 
a residual risk associated with the Group’s 
historic US transactions.
acquisitions of £3.6m and adjustments to 
the fair value of shares still to be issued 
following changes in the Company’s share 
price of £0.1m.
There is uncertainty as to what actions, 
if any, may occur from the above noted 
events, and any impact such action may 
have on the Company either directly, or 
from being a member of the Sportingbet 
plc Group. However, the Board does not 
consider it probable that a material liability  
or material impairment in the carrying 
value of assets will arise as a result of any 
potential action.
10. RESERVES
11. CONTINGENT LIABILITIES
Shares to 
be issued 
£m
Share 
premium 
account 
£m
Profit 
and loss 
account 
£m
At 1 August 2007    42.9 13.0 18.7 
Prior year adjustment    - - - 
At 1 August 2007    42.9 13.0 18.7 
Acquisitions    11.9 (5.5) - 
Share option charge    0.1 - 7.6
Other movements    - - (0.1) 
Loss for the year    - - (6.9) 
At 31 July 2008    54.9 7.5 19.3 
   NOTES TO THE PARENT COMPANY 
FINANCIAL STATEMENTS  
relate to the 2006 Share Plan, 213,427 relate 
to conditional awards and 1,964,540 to 
discretionary awards to Executive Directors. WINNING MOMENTS 88 ANNUAL REPORT AND ACCOUNTS 2007-2008 89
   NOTICE OF MEETING 
NOTICE IS HEREBY GIVEN that the Annual 
General Meeting of Sportingbet Plc (the 
‘Company’) will be held at the offices 
of Smithfield Consultants Limited, 10 
Aldersgate Street, London, EC1A 4HJ on  
12 December 2008 at 10.30am for the 
following purposes:
Ordinary business 
To consider, and if thought fit, pass the 
following ordinary resolutions: 
Resolution 1
To receive and adopt the accounts, the 
Directors’ report, and the auditor’s report  
on the accounts for the year ended  
31 July 2008.
Resolution 2
To receive and approve the Directors’ 
Remuneration Report set out on pages 34 
to 39 of the Directors’ Report for the year 
ended 31 July 2008.
Resolution 3 
To re-appoint Grant Thornton (UK) LLP 
as auditors of the Company to hold office 
from the conclusion of the meeting until 
the conclusion of the next General Meeting 
at which accounts are laid before the 
Company.
Resolution 4
To authorise the Directors to set the  
auditor’s remuneration. 
Resolution 5 
To re-appoint Peter Dicks as a Director of  
the Company. 
Resolution 6 
To re-appoint James Wilkinson as a Director 
of the Company. 
Resolution 7
To re-elect Andrew McIver as a Director of 
the Company. 
Special business
To consider and, if thought fit, pass the 
following resolutions, of which resolutions 
8 and 10 will be proposed as ordinary 
resolutions and resolutions 9, 11 and 12 will 
be proposed as special resolutions:
Resolution 8
That, in substitution for all previous like 
authorities which are hereby revoked, 
pursuant to and in accordance with 
Section 80 of the Companies Act 1985 
the Directors be and are hereby generally 
and unconditionally authorised to exercise 
all the powers of the Company to allot 
relevant securities (within the meaning of 
that section) up to an aggregate nominal 
amount of £158,316, provided that this 
authority shall (unless previously revoked, 
varied or renewed) expire on whichever is 
the earlier of the conclusion of the Annual 
General Meeting of the Company next 
following the passing of this resolution 8 and 
31 December 2009. For the purposes of this 
resolution 8 the said authority shall allow 
and enable the Directors to make an offer or 
agreement before the expiry of that authority 
which would or might require relevant 
securities to be allotted after such expiry and 
the Directors may allot relevant securities in 
pursuance of any such offer or agreement 
as if the authority conferred hereby had not 
expired, and words or expressions defined 
in or for the purposes of Part IV of the 
Companies Act 1985 shall bear the same 
meaning herein.
Resolution 9
That pursuant to and in accordance with 
Section 95 of the Companies Act 1985 the 
Directors be and are hereby empowered, 
subject to the passing of resolution 8 above, 
to allot equity securities for cash pursuant 
to the general authority conferred upon the 
Directors in resolution 8 above as if sub-
section (1) of Section 89 of the Companies 
Act 1985 did not apply to any such 
allotment, provided that this power hereby 
granted shall be limited to:
The allotment of equity securities in •	
connection with or pursuant to an offer 
of equity securities open for acceptance 
for a period fixed by the Directors to 
holders on the register on a record 
date fixed by the Directors of ordinary 
shares in the capital of the Company 
in proportion to their respective 
holdings (for which purpose holdings 
in certificated and uncertificated form 
may be treated as separate holdings) 
but subject to such exclusions or other 
arrangements as the Directors may 
consider necessary or expedient to deal 
with fractional entitlements or legal or 
practical problems under the laws of 
or the requirements of any recognised 
regulatory body or any stock exchange in 
any territory; and
(otherwise than pursuant to sub- •	
paragraph (i) of this resolution 9) the 
allotment of equity securities up to an 
aggregate nominal amount of £23,747, 
and shall (unless previously revoked, 
varied or renewed) expire on whichever 
is the earlier of the conclusion of the next 
Annual General Meeting of the Company 
following the passing of this resolution 9 
and 31 December 2009.
For the purposes of this resolution 9 the said 
power shall allow and enable the Directors to 
make an offer or agreement before the expiry 
of that power which would or might require 
equity securities to be allotted after such 
expiry and the Directors may allot equity 
securities in pursuance of any such offer 
or agreement as if such power conferred 
hereby had not expired, the nominal amount 
of any securities shall be taken to be, in the 
case of rights to subscribe for or convert any 
securities into shares of the Company, the 
nominal amount of any such shares which 
may be allotted pursuant to such rights, and 
words and expressions defined in or for the 
purposes of Part IV of the Companies Act 
1985 shall bear the same meaning herein. 
Resolution 10
That the Company and any wholly owned 
subsidiary of the Company be and is hereby 
authorised to:
Make political donations to political •	
parties and/or independent election 
candidates not exceeding £100,000  
in total;
Make political donations to political •	
organisations other than political parties 
not exceeding £100,000 in total; and
Incur political expenditure not exceeding •	
£100,000 in total, during the period 
beginning on the date of the passing of 
this resolution 10 and ending on the  
earlier of the conclusion of the next 
Annual General Meeting of the Company 
and 31 December 2009.
For the purposes of this resolution 10 
the terms ‘political donation’, ‘political 
parties’, ‘political organisation’ and ‘political 
expenditure’ have the meanings given 
to them by Sections 363 to 365 of the 
Companies Act 2006.
Resolution 11
That, pursuant to section 166 of the 
Companies Act 1985 and article 7(C) of 
the Company’s articles of association, 
the Company is hereby generally and 
unconditionally authorised to make market 
purchases (within the meaning of section 
163 (3) of the Companies Act 1985) of 
ordinary shares of 0.1p each in the capital  
of the Company (‘ordinary shares’) on  
such terms and in such manner as the 
Directors may from time to time determine 
provided that: 
The maximum number of ordinary shares •	
hereby authorised to be purchased is 
47,494,863 (representing approximately 
10% of the Company’s issued ordinary 
share capital at the date of this notice of 
meeting); 
The minimum price, exclusive of any •	
expenses, which may be paid for each 
ordinary share is 0.1p;
The maximum price, exclusive of any •	
expenses, which may be paid for each 
ordinary share is an amount equal to 
105% of the average of the middle 
market quotation for an ordinary share  
of the Company for the five business 
days immediately preceding the day  
on which such share is contracted to  
be purchased; 
Unless previously renewed, revoked or •	
varied, the authority hereby conferred 
shall expire at the close of the next 
Annual General Meeting of the Company 
or 31 December 2009, whichever is the 
earlier; and
Under this authority the Company may •	
make a contract to purchase ordinary 
shares which would or might be executed 
wholly or partly after the expiry of this 
authority, and may make purchases of 
ordinary shares pursuant to it as if this 
authority had not expired. 
Resolution 12
That the regulations contained in the  
printed document produced to the meeting 
and signed, for the purpose of identification, 
by the chairman of the meeting, be and  
are hereby adopted as the articles of 
association of the Company in substitution 
for the existing articles of association of  
the Company.
15 October 2008 
By Order of the Board 
D Talisman LLB ACIS 
Company Secretary  
Registered Office:  
4th Floor  
45 Moorfields  
London  
EC2Y 9AE WINNING MOMENTS 90 ANNUAL REPORT AND ACCOUNTS 2007-2008 91
   NOTICE OF MEETING 
Notes to the Notice of Annual 
General Meeting
Entitlement to attend and vote
Pursuant to Regulation 41 of the 
Uncertificated Securities Regulations 2001, 
only those shareholders on the register of 
members of the Company as at 6.00pm 
on 10 December 2008 or, if the meeting is 
adjourned, on the register of members of 
the Company 48 hours before the time fixed 
for the adjourned meeting, shall be entitled 
to attend or vote at the above Annual 
General Meeting in respect of the number of 
shares registered in their name at that time. 
Changes to entries on the relevant register 
after 6.00pm on 10 December 2008 or, if 
the meeting is adjourned, on the register of 
members of the Company 48 hours before 
the time fixed for the adjourned meeting, 
shall be disregarded in determining the 
rights of any person to attend and vote at 
the meeting. 
Proxies
CREST members who wish to appoint a 
proxy or proxies by utilising the CREST 
electronic proxy appointment service may 
do so by utilising the procedures described 
in the CREST Manual. CREST personal 
members or other CREST sponsored 
members, and those CREST members who 
have appointed a voting service provider(s), 
should refer to their CREST sponsor or 
voting service provider(s), who will be able to 
take the appropriate action on their behalf. 
In order for a proxy appointment made by 
means of CREST to be valid, the appropriate 
CREST message (a ‘CREST Proxy 
Instruction’) must be properly authenticated 
in accordance with Euroclear UK & Ireland 
Limited’s (‘Euroclear’) specifications and 
must contain the information required 
for such instructions, as described in the 
CREST Manual. The message, regardless 
of whether it relates to the appointment of a 
proxy or to an amendment to the instruction 
given to a previously appointed proxy must, 
in order to be valid, be transmitted so as 
to be received by the Company’s agent (ID 
RA10) by the latest time(s) for receipt of 
proxy appointments specified in the notice 
of meeting. For this purpose, the time of 
receipt will be taken to be the time (as 
determined by the timestamp applied to the 
message by the CREST Applications Host) 
from which the Company’s agent is able to 
retrieve the message by enquiry to CREST in 
the manner prescribed by CREST.
The Company may treat as invalid a CREST 
Proxy Instruction in the circumstances 
set out in Regulation 35(5)(a) of the 
Uncertificated Securities Regulations 2001.
CREST members and, where applicable, 
their CREST sponsors or voting service 
providers should note that Euroclear does 
not make available special procedures in 
CREST for any particular messages. Normal 
system timings and limitations will therefore 
apply in relation to the input of CREST Proxy 
Instructions. It is the responsibility of the 
CREST member concerned to take (or, if 
the CREST member is a CREST personal 
member or sponsored member or has 
appointed a voting service provider(s), to 
procure that his CREST sponsor or voting 
service provider(s) take(s)) such action 
as shall be necessary to ensure that a 
message is transmitted by means of the 
CREST system by any particular time. In this 
connection, CREST members and, where 
applicable, their CREST sponsors or voting 
service providers are referred, in particular, 
to those sections of the CREST Manual 
concerning practical limitations of the 
CREST system and timings.
A member of the Company eligible to attend 
and vote at the meeting is entitled to appoint 
one or more proxies to exercise all or any of 
his rights to attend, speak and vote at the 
meeting. A member can appoint more than 
one proxy in relation to the meeting provided 
that each proxy is appointed to exercise the 
rights attaching to different shares held by 
the member. A proxy need not be a member 
of the Company. 
A form of proxy accompanies this document 
for your use. To be valid, forms of proxy 
together with the power of attorney or other 
authority (if any) under which it is signed or 
a notarially certified copy thereof must be 
deposited at the offices of the Company’s 
Registrars, Capita Registrars, Proxy 
Department, The Registry, 34 Beckenham 
Road, Beckenham, Kent BR3 4TU not less 
than 48 hours before the time appointed for 
holding the meeting or adjourned meeting. A 
form of proxy must be returned in one of the 
following methods:
electronically through the Company’s •	
Registrars’ website  
www.capitaregistrars.co.uk
in hard copy form by post, by courier or •	
by hand to the Company’s Registrars: 
Capita Registrars 
Proxy Department 
The Registry 
34 Beckenham Road 
Beckenham, Kent BR3 4TU; or
in the case of CREST members, by •	
utilising the CREST electronic proxy 
appointment service in accordance with 
the procedures set out above.
Deposit of a form of proxy will not prevent a 
member from attending and voting in person 
should he so wish.
In the case of joint holders, where more than 
one of the joint holders purports to appoint 
a proxy, only the appointment submitted 
by the most senior holder will be accepted. 
Seniority is determined by the order in which 
the names of the joint holders appear in the 
Company’s register of members in respect 
of the joint holding (the first-named being 
the most senior). 
Corporate Representatives
In order to facilitate voting by corporate 
representatives at the meeting, 
arrangements will be put in place at the 
meeting so that (i) if a corporate shareholder 
has appointed the chairman of the meeting 
as its corporate representative to vote on 
a poll in accordance with the directions of 
all of the other corporate representatives 
for that shareholder at the meeting, then on 
a poll those corporate representatives will 
give voting directions to the chairman and 
the chairman will vote (or withhold a vote) 
as corporate representative in accordance 
with those directions; and (ii) if more than 
one corporate representative for the same 
corporate shareholder attends the meeting 
but the corporate shareholder has not 
appointed the chairman of the meeting as 
its corporate representative, a designated 
corporate representative will be nominated, 
from those corporate representatives who 
attend, who will vote on a poll and the other 
corporate representatives will give voting 
directions to that designated corporate 
representative. Corporate shareholders 
are referred to the guidance issued by 
the Institute of Chartered Secretaries and 
Administrators on proxies and corporate 
representatives (www.icsa.org.uk) for further 
details of this procedure. The guidance 
includes a sample form of appointment 
letter if the chairman is being appointed as 
described in (i) above.
Documents on display
A register of Directors’ interests in the share 
capital and debentures of the Company, 
copies of service agreements under which 
Directors of the Company are employed, 
the current articles of association and the 
proposed new articles of association are 
available for inspection at the Company’s 
registered office during normal business 
hours from the date of this meeting notice 
and will also be available for inspection at 
the Annual General Meeting for at least 15 
minutes prior to and during the meeting.
Electronic Addresses
You may not use any electronic address 
provided either in this notice of Annual 
General Meeting or any related documents 
(including the form of proxy) to communicate 
with the Company for any purposes other 
than those expressly stated.
Explanatory notes to the 
resolutions 
Ordinary business
The following notes explain some of the 
items of ordinary business.
Resolution 1 
The Directors must lay the annual accounts 
and the respective reports of the Directors 
and auditors before shareholders at an 
Annual General Meeting. 
Resolution 2 
This Resolution is to approve the Directors’ 
remuneration report for the year ended 31 
July 2008. You can find the report in the 
Annual Report and Accounts for the year 
ended 31 July 2008. 
Resolution 3 
At each General Meeting at which accounts 
are laid before the members, the Company 
is required to appoint auditors to stand until 
the next such meeting. 
Grant Thornton (UK) LLP have indicated their 
wish to continue as the Company’s auditors.
Re-appointment of Directors 
(resolutions 5 and 6) 
Under the Company’s Articles of 
Association, any Director appointed  
during the year must stand for  
re-appointment at the next Annual General 
Meeting. Having been appointed since the 
last Annual General Meeting, Peter Dicks 
and James Wilkinson submit themselves  
for  re-appointment.
Peter Dicks  
Peter Dicks (65) joined the Group in January 
2000 as its Non-Executive Chairman. He 
resigned on 14 September 2006 and was 
re-appointed as the Group’s Non- Executive 
Chairman and Director on 1 February 2008.  
Peter is the Chairman of Private Equity 
Investor and a Director of various UK and 
US companies including Mears Group plc 
and Standard Microsystems (NASDAQ).  
Previously, Peter was a founder of 
Abingworth Plc, which specialised in private 
equity investments.
James Wilkinson  
James Wilkinson (41) brings extensive 
listed company and finance experience to 
Sportingbet having previously been Group 
Finance Director of Johnson Service Group 
plc from 2004 - 2007. Prior to that he 
worked at Informa Group plc for ten years in 
a variety of roles culminating in the position 
of Group Finance 
Director from 1998 - 2004. James started his 
career at Touche Ross where he qualified as 
a Chartered Accountant in 1991. 
Re-election of Directors 
(resolution 7) 
Under the Company’s Articles of 
Association, each Director must stand 
for re-election every three years. You are 
therefore asked to re-elect Andrew McIver 
as a Director of the Company.
Special business
In addition to the ordinary business of 
the Company, this year there will be the 
following items of special business at the 
Annual General Meeting. WINNING MOMENTS 92 ANNUAL REPORT AND ACCOUNTS 2007-2008 93
   NOTICE OF MEETING 
Power to issue ordinary shares 
(resolutions 8 and 9)
By resolution 8, your Directors are seeking 
authority to allot share capital under Section 
80 of the Companies Act 1985 of up to 
one third of the issued share capital of the 
Company as at 13th October 2008 (so as to 
include issues of shares in the capital of the 
Company up to 13th October 2008 being 
the latest practicable date before publication 
of this notice), being in accordance with 
the guidelines issued by the Investment 
Protection Committees of the Association of 
British Insurers and the National Association 
of Pension Funds. 
By resolution 9, your Directors are seeking 
the power to disapply the statutory pre-
emption rights in respect of pre-emptive 
share allotments in the Company and also in 
respect of non pre-emptive share allotments 
for cash up to 5% of the issued share capital 
of the Company as at 13th October 2008 
(so as to include issues of shares in the 
capital of the Company up to 13th October 
2008 being the latest practicable date 
before publication of this notice), being in 
accordance with the guidelines issued by 
the Investment Protection Committees of 
the Association of British Insurers and the 
National Association of Pension Funds. 
Political donations and 
expenditure (resolution 10)
The Company has a policy that it does not 
make political donations to, or incur political 
expenditure on behalf of, political parties 
or political organisations. However, the 
Companies Act 2006  (‘2006 Act’) contains 
restrictions on companies making ‘political 
donations’ to ‘political parties or other 
political organisations’ or incurring ‘political 
expenditure’ and it defines these terms very 
widely. The effect is that some activities of 
the Company that form part of the normal 
relationship between the Company and 
bodies concerned with policy review, law 
reform and other business matters affecting 
the Company may be restricted by the 
provisions of the 2006 Act. Such activities, 
which are in shareholders’ interests for the 
Company to conduct, are not designed 
to support, or implement support, for 
a particular political party or political 
organisation. The Company believes that 
the authority proposed under this resolution 
9 is necessary to ensure that it does not 
commit any technical or inadvertent breach 
of the restrictions that could arise from the 
uncertainty generated by the wide definitions 
contained within the 2006 Act when carrying 
out activities in the furtherance of its 
legitimate business interests. 
Resolution 11
The Companies Act 1985 permits a 
company to purchase its own shares 
provided that the purchase has been 
authorised by the Company in a general 
meeting. Whilst the Directors have no 
present intention of making such purchases, 
it is common practice for listed companies 
to seek such authority and the Directors 
consider that it is prudent for them to do so. 
Resolution 10 if passed will give the 
Company authority to purchase its own 
shares in the market up to a limit of 10%  
of its issued ordinary share capital.  
The maximum and minimum prices are 
stated in the resolution. Your Directors 
believe that it is advantageous for the 
Company to have this flexibility to make 
market purchases of its own shares. In 
the event that shares are purchased, they 
would either be cancelled (and the number 
of shares in issue would be reduced 
accordingly) or retained as treasury shares 
AIM companies, with authorisation from 
shareholders, are able to purchase their 
own share and to hold shares repurchased 
as treasury shares with a view to possible 
re-sale at a future date rather than having 
to cancel them. The Company will consider 
holding repurchased shares pursuant to 
the authority conferred by this resolution as 
treasury shares and would solely be used to 
satisfy the release of awards or the exercise 
of options under the Company’s share 
schemes. This would give the Company the 
ability to re-issue treasury shares quickly 
and cost effectively and would provide the 
Company with additional flexibility in the 
management of its capital base. Any issues 
of treasury shares for the purposes of the 
Company’s employee share schemes will be 
made within the 10% anti-dilution limit set 
by the Association of British Insurers. Your 
Directors will only exercise this authority 
if they are satisfied that a purchase would 
result in an increase in expected earnings 
per share and would be in the interests of 
shareholders generally. The total number 
of options and warrants to subscribe 
for ordinary shares outstanding at 13th 
October 2008, the latest practicable date 
prior to publication of this document, was 
37,563,079 which represented 7.91% of the 
issued share capital at that time and which 
will represent 7.07% of the issued share 
capital if the full authority to buy back shares 
is used. 
Resolution 12
Resolution 12 will be proposed at the Annual 
General Meeting to adopt new articles of 
association to reflect the fact that on, 6 April 
2008 and 1 October 2008 certain sections 
of the 2006 Act came into force. The 
amendments to the articles are proposed, 
amongst other things, to ensure that the 
articles of association are consistent with the 
relevant provisions of the 2006 Act and, in 
addition, to enable the Company to benefit 
from the broader powers under it. The main 
changes are explained below.
The concept of extraordinary resolutions has 
not been retained under the 2006 Act and 
all references to “extraordinary resolutions” 
have been replaced with “special resolution”.
Article 32 (new numbering) has been 
amended as the provisions relating to the 
right to refuse to register a transfer of any 
share have been changed by section 771 
of the 2006 Act. In particular, the Directors 
are now obliged to send the transferee such 
information about the reasons for refusal as 
the transferee may reasonably request.
Article 50 (new numbering) has been 
amended so that omission to send notice 
of general meetings to members due to 
circumstances beyond the Company’s 
control will not invalidate any resolution 
passed or proceedings held at the meeting 
for which any person entitled to receive such 
notice did not receive it.
Article 55 (new numbering) has been 
amended to make it clear that authorised 
representatives of a corporation which is a 
shareholder count towards the quorum of a 
general meeting and that two persons who 
are proxies or corporate representatives of 
the same member shall be a quorum.
Article 57 (new numbering) dealing with 
the amendment of resolutions, has been 
updated to bring the wording in line with 
the draft model form articles for public 
companies (the “Model Articles”) of the 
Department for Business Enterprise and 
Regulatory Reform. The Model Articles 
will replace Table A articles under the 
Companies Act 1985 in due course.
Article 74 (new numbering) has been 
amended so that in determining the time for 
receipt of proxies, the Company does not 
have to take into account time that is not a 
working day.
A new article 104 has been inserted in 
relation to the new provisions in the 2006 Act 
dealing with Directors’ conflicts of interest. 
The 2006 Act sets out Directors’ general 
duties which largely codify the existing law 
but with some changes. Under the 2006 Act, 
from 1 October 2008 a Director must avoid a 
situation where he has, or can have, a direct 
or indirect interest that conflicts, or possibly 
may conflict with the company’s interests. 
The requirement is very broad and could 
apply, for example, if a Director becomes a 
director of another company or a trustee of 
another organisation. 
  
The 2006 Act allows directors of public 
companies to authorise conflicts and 
potential conflicts, where appropriate, 
where the articles of association contain a 
provision to this effect. The 2006 Act also 
allows the articles of association to contain 
other provisions for dealing with Directors’ 
conflicts of interest to avoid a breach of duty. 
The amendments give the Directors authority 
to approve such situations and include some 
conflict management provisions regarding 
confidential information and a director’s 
ability to absent himself from discussions. 
Only Directors who have no interest in the 
matter being considered will be able to take 
the relevant decision. The Directors will also 
be able to impose limits or conditions when 
giving authorisation if they think this  
is appropriate.
It is also proposed that the articles of 
association should contain provisions 
relating to confidential information, 
attendance at board meetings and 
availability of board papers to protect a 
Director being in breach of duty if a conflict 
of interest or potential conflict of interest 
arises. These provisions will only apply 
where the position giving rise to the potential 
conflict has previously been authorised by 
the Directors.
Article 180 (new numbering) has been 
amended to take advantage of the widened 
scope under the 2006 Act to enable a 
company to indemnify Directors and to 
fund expenditure incurred in connection 
with certain actions against Directors. In 
particular, the amendments allow a company 
that is a trustee of an occupational scheme 
to indemnify a Director against liability 
incurred in connection with the Company’s 
activities as trustee of the scheme and also 
expressly apply to associated companies.
Minor administrative and presentational 
changes to the articles of association are not 
noted above.
A copy of the current articles of association 
and a copy of the proposed new articles of 
association marked to show the changes 
to the current articles of association are 
available for inspection at the Company’s 
registered office during normal business 
hours and will also be available for 
inspection at the Annual General Meeting  
for at least 15 minutes prior to and during 
the Meeting. WINNING MOMENTS 94 ANNUAL REPORT AND ACCOUNTS 2007-2008 95
Amounts wagered 1422.8 1526.2 2063.5 1096.4 1364.2
Net gaming revenue 108.8 175.8 303.3 119.4 147.0
Operating profit/(loss) before exceptional items, 
share option charge and amortisation 21.7 60.5 103.0 4.9 22.7
Exceptional items (4.7) 1.3 – (26.8) (12.0)
Share option charge – – (6.7) (9.9) (8.0)
Amortisation (9.6) (16.4) (22.1) (1.8) (3.9)
Group operating profit/(loss) 7.4 45.4 74.2 (33.6) (1.2)
Net finance income (2.0) (4.6) (3.0) 1.0 0.4
Profit/(loss) before taxation 5.4 40.8 71.2 (32.6) (0.8)
Taxation – – – (1.2) (3.5)
Profit/(loss) for the period 5.4 40.8 71.2 (33.8) (4.3)
Loss for the period from discontinued operations - - - (281.3) -
Group profit/(loss) for the period 5.4 40.8 71.2 (315.1) (4.3)
Earnings per share     
Basic 2.6p 13.4p 17.7p (73.2)p (0.9)p
Basic adjusted 10.0p 18.6p 24.9p 4.4p 4.3p
Diluted adjusted 6.8p 13.9p 23.8p 4.0p 3.8p
   SHAREHOLDERS’ INFORMATION
Registrars 
All enquiries relating to shares or 
shareholdings should be addressed to: 
Capita Registrars  
Northern House  
Woodsome Park  
Fenay Bridge  
Huddersfield  
West Yorkshire HD8 0LA 
Shareholder Helpline No: 0871 664 0300 - 
calls cost 10p per min plus network extras
Facsimile 01484 600 911
www.sportingbetplc.com 
The Company’s website provides, amongst 
other things, the latest news and details 
of the Company’s activities, share price 
information and links to the websites of our 
brands. The investor relations section of 
www.sportingbetplc.com contains up-to-
date information including the Company’s 
latest results, the Company’s financial 
calendar and archived webcasts. 
www.sportingbet-shares.com 
Shareholders who prefer to receive 
communications about the Company by 
email are encouraged to register their details 
at the Company’s shareholder portal –  
www.sportingbet-shares.com. You will need 
your investor code (found on your share 
certificate or on correspondence from Capita 
Registrars) to complete this process at the 
first time of registering. Capita Registrars will 
send you a username and activation code 
by post and, upon receipt; you will then be 
able to access the Company’s shareholder 
portal. The shareholder portal provides 
shareholders of the Company with the ability 
to choose from the following services: 
Annual Report and Accounts, AGM and •	
EGM notices and webcasts  
Shareholders can choose to have these 
emailed to a specified email address 
rather than  
Web proxy voting •	  
Shareholders can vote at AGMs or EGMs 
through www.sportingbet-shares.com or  
alternatively, via www.capitaregistrars.
com by clicking on the quick-log-in-link 
and entering Sportingbet as the company 
name. You will need your investor code 
for this service; 
Announcements made to the •	
Alternative Investment Market 
UK based shareholders can choose to 
receive certain RNS announcements  
by email; 
Direct dividend payments •	  
Dividends can be paid automatically  
into your bank or building society 
account. There are two primary benefits 
of this service.  
a) There is no chance of your dividend 
cheque going missing in the post; and  
b) The dividend payment is received more 
quickly because the cash sum is paid 
directly into the account on the payment 
date without the need to pay in the 
cheque and wait for it to clear.  
As an alternative, shareholders can 
download a dividend mandate and 
complete and post to Capita Registrars; 
Change of address •	  
Shareholders can change their  
address directly online at  
www.sportingbet-shares.com or by 
notifying Capita Registrars in writing at 
the above address; 
Your shareholding •	 
Shareholders can value their shareholding 
and view previous transactions in the  
Company’s shares; and
Share dealing •	 
A share dealing service is available to  
the Company’s shareholders to buy or 
sell the Company’s shares at Capita 
Share Dealing Services via  
www.sportingbetplc.com or  
www.sportingbet-shares.com.  
Telephone dealing is also available via 
Capita Registrars on 0871 664 0445 calls 
cost 10p per min plus network extras
Please note that the Directors of the 
Company are not seeking to encourage 
shareholders to either buy or sell the 
Company’s shares. Shareholders of the 
Company who are in any doubt as to 
what action to take are recommended to 
seek financial advice from an independent 
financial adviser authorised by the Financial 
Services and Markets Act 2000. 
Non-shareholders can register to receive 
notifications of the Company’s Annual 
Report and Accounts, and webcasts at 
www.sportingbetplc.com. 
Lost share certificate 
If your share certificate is lost or stolen, 
you should immediately contact Capita 
Registrars Shareholder Helpline No: 0871 
664 0300 - calls cost 10p per min plus 
network extras who will advise on the 
process for arranging a replacement. 
Duplicate shareholder accounts 
If, as a shareholder, you receive more 
than one copy of a communication from 
the Company you may have your shares 
registered in at least two accounts. This 
happens when the registration details of 
separate transactions differ slightly. If you 
wish to consolidate such multiple accounts, 
please call Capita Registrars Shareholder 
Helpline No: 0871 664 0300 - calls cost 10p 
per min plus network extras. 
ShareGift 
ShareGift, is a charity share donation 
scheme. It is a free service for shareholders 
wishing to give shares to charitable causes. 
It may be useful for those who wish to 
dispose of a small parcel of shares which 
would cost more to sell than they are worth. 
There are no capital gains tax implications 
(i.e. no gain or loss) on gifts of shares to 
charity and it is also possible to obtain 
income tax relief. Further information can be 
found at www.sharegift.org.
1  
The periods ended 31 July 2004, 2005 and 
2006 are stated under UK GAAP , as it is not 
practical to restate amounts for period prior 
to the date of transition to IFRS.   
The principal differences between UK GAAP 
and IFRS are discussed in Note 27 of the 
financial statements.
   FINANCIAL SUMMARY  
Year ended 
31 July 2006 
UK GAAP
1 
£m
Year ended 
31 July 2005 
UK GAAP
1 
£m
16 month 
Year ended 
31 July 
2004 
UK GAAP
1 
£m
Year ended 
31 July 2007 
IFRS 
£m
Year ended
31 July 2008
IFRS 
£m WINNING MOMENTS 96
   CORPORATE DIRECTORY
Secretary
D Talisman LLB ACIS
Registered Office
4th Floor 
45 Moorfields 
London EC2Y 9AE
Company Number
3534726
Registrars
Capita Registrars 
Northern House  
Woodsome Park  
Fenay Bridge  
Huddersfield  
West Yorkshire HD8 0LA 
Auditors
Grant Thornton UK LLP 
Grant Thornton House 
Melton Street, Euston Square 
London NW1 2EP
Corporate Advisors & Stockbrokers
Daniel Stewart and Company Plc 
Becket House  
36 Old Jewry 
London EC2R 8DD
Solicitors
Nabarro 
Lacon House 
84 Theobold’s Road 
London WC1X 8RW
Principal Bankers
Barclays Bank Plc 
Floor 27 
1 Churchill Place 
London E14 5HP
Press Office
Smithfield Consultants 
10 Aldersgate Street 
London EC1A 4HJ DESIGN BY FIREDOG
www.firedog-design.co.uk www.sportingbetplc.com
SPORTINGBET PLC
4th Floor  
45 Moorfields 
London 
EC2 9AE
CONT ACT US
T el: 00 44 (0)20 7184 1800 
Fax: 00 44 (0)20 7184 1810 
Email: info@sportingbet.com
INVESTOR RELATIONS
Email: investor@sportingbet.com