winning  
moments
annual report and accounts 
20072008 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 20072008 1
highlights
net gaming revenue growth of 23 to £1470m •	
operating profit more than trebled to £227m •	
restructuring completed resulting in improved operating profit margin of 154 •	
2007 restated 41
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 inhouse
solid start to new financial year revenue growth in excess of 30 in first two •	
months
net cash of £286m •	
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 13642 10964 24
net gaming revenue 1470 1194 23
ebitda 292 119 145
adjusted operating profit 227 49 363
group operating loss 12 336 
diluted eps p 09 77 
adjusted diluted eps p 38 11 245
net cash 286 163 75
2008 
£m
2007  
restated 
£m
 
 winning moments 2
karen bet on efficient at 121 
with sportingbet australia’s 
telephone betting service
annual report and accounts 20072008
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 
90000 contacts a month – 25000 
calls 32000 live chats and 33000 
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 70133 
bets t aken by sportingbet on 
the champions league final
annual report and accounts 20072008
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 €1000000 
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 20072008
who won
alist air clarke
london united kingdom
sportingbet is a trusted and valued 
name within the gaming industry 
sportingbet’s inrunning betting 
product ‘inplay’ 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 20072008
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 antimoney 
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 hasslefree 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 20072008
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 everchanging 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 inrunning betting from the 
champions league down to youth 
matches in poland the czech 
republic and sweden 
diversity 
in addition sportingbet offers 
multitable 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 14000 betting opportunities are offered 
in 22 languages to customers from around the globe
11 winning moments 12 annual report and accounts 20072008 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 
inrunning 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 
£120m 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 setup 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 20072008 15
   chairman’s st atement 
peter dicks
chairman and nonexecutive 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 £227m 
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 
threefold 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 inhouse 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 20072008 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 onetoone 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 1754m 
2007 1426m at an average bet 
size of £473 2007 £506 the 
casino margin percentage was 
34 2007 32 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 464523 
2007 436779 the number of bets 
placed rose by 14 to 515m  
2007 453m at a rate of 111 per 
active customer per year 2007 104 
bets with an average bet size of 
£1498 2007 £1326 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 inrunning betting product 
branded ‘inplay’ allowing 
customers to bet throughout 
the game on a wide variety of 
outcomes consequently inplay 
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 roundthe
clock inrunning 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 inplay 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 
101 2007 90 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 20072008 19
in july 2008 sportingbet brought 
inhouse the operation and 
management of miapuestacom 
the group’s spanish domain 
the contract termination payment 
and the cost of setting up the  
inhouse operation has resulted 
in an exceptional charge of £47m 
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 
vistabetcom 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 inhouse 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 
£237m 2007 £290m pre bonus 
deductions down 183 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 usfocused 
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 inhouse 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 inhouse in april 2008 winning moments 20 annual report and accounts 20072008 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 nonexecutive 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 inrunning 
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 23094 to 
31032 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 37 2007 29 
amounting to gross gaming revenue 
of £235m 2007 £158m
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 
outofstate 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 20072008 23
brian harris aged 62 joined 
sportingbet as a nonexecutive 
director in january 2003  
the founder and senior partner 
of a london law firm with an 
international clientele he has  
acted for foreign governments  
multinational 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  
nonexecutive 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  
nonexecutive director
brian harris
nonexecutive director 
nigel payne 
nonexecutive 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 rejoined the board 
as chairman and nonexecutive 
director in february 2008  peter 
started his career as a stockbroker 
and was cofounder 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 us 
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  nonexecutive 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 nonexecutive 
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 20072008 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 £13642m 2007 £10964m earning 
net gaming revenue “ngr” previously 
disclosed as gross profit of £1470m  
2007 £1194m 
amounts wagered on sports betting in 
europe grew by 275 to £7649m 2007 
£5998m earning ngr of £711m 2007 
£497m casino and gaming contributed 
a further £368m and poker £200m to 
both amounts wagered and ngr 2007 
£294m and £279m amounts wagered on 
australian sports betting grew by 235 to 
£5425m 2007 £4393m earning ngr of 
£191m 2007 £124m  
as a percentage of amounts wagered the 
european and australian sports ngr were 
93 and 35 respectively 2007 83 
and 28 however amounts wagered 
and ngr are stated after a deduction for 
customer bonuses of £135m 2007 £79m 
without the bonus deduction the equivalent 
numbers would have been 101 and 37 
2007 90 and 29 the increase in 
customer bonuses from £79m to £135m 
during the year reflects the bringing inhouse 
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 £1243m 2007 restated 
£1145m accounting for 846 of ngr 
2007 restated 959
operating profit before exceptional items 
share option charge and amortisation for 
the year is marginally better than expected 
at £227m 2007 restated £49m the 
group benefited from the inclusion in 
the year of euro 2008 which contributed 
£202m of additional amounts wagered 
generating £20m of ngr historically these 
tournaments tend to deliver a lower than 
average margin for bookmakers euro 2008 
however delivered approximately £10m 
more of ngr than our original expectations
earnings before interest tax depreciation 
and amortisation excluding exceptional 
items and share option charge was up 
1454 to £292m 2007 restated £119m
operating loss after charging exceptional 
items of £120m 2007 £268m share 
option charge of £80m 2007 £99m and 
amortisation of other intangible assets of 
£39m 2007 £18m was £12m 2007 
restated 336m
finance income
finance income comprised interest 
receivable of £08m 2007 £12m and 
interest payable on bank loans of £04m 
2007 £02m
earnings per share
basic earnings per share before exceptional 
items share option charge and amortisation 
was 43p 2007 restated 12p diluted 
earnings per share before exceptional items 
share option charge and amortisation was 
38p 2007 restated 11p
cash flow
during the year ended 31 july 2008 the 
group generated cash from operating 
activities of £330m 2007 restated £01m  
as at 31 july 2008 the group had £494m 
2007 restated £345m of cash and liquid 
resources on its balance sheet of which 
£152m 2007 £129m related to  
customer liabilities
gross financial liabilities amounted to 
£101m 2007 £54m which comprised 
£56m 2007 £53m bank loans secured on 
residential properties in the channel islands 
£45m 2007 £nil contingent consideration 
following the acquisition of the business and 
assets of belmond international limited and 
£nil 2007 £01m contingent consideration 
relating to the acquisition of sportingbet 
italia spa
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 20072008 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 straightdealing 
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  
nonexecutive director brian harris and  
its other members are sean o’connor  
senior independent nonexecutive 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 groupwide 
best practice on matters including age 
verification fraud money laundering 
responsible gaming selfexclusion  
and privacy
appropriate recommendations are made to 
the company’s board terms of reference 
can be viewed on wwwsportingbetplccom 
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 multiplayer 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 selfregulation 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  
subcommittees
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 20072008 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 nonexecutive directors all 
nonexecutive 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 nonexecutive 
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 reelection at least 
once every three years and new directors 
are subject to a transparent and rigorous 
appointment process including submitting 
themselves for reelection 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 c31 in 
that not all the members of the committee 
are independent nonexecutive 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 nonexecutive 
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 nonexecutive 
directors the nonexecutive 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 
nonexecutive director sean o’connor is 
available to shareholders throughout  
the year  winning moments 30 annual report and accounts 20072008 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 
c21 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 
nonexecutive directors 
the award of nonaudit work to the auditor 
is subject to preclearance 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 20072008 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 £43m 2007 
£3151m 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 nonexecutive director of the 
company on 1 february 2008 at which 
point sean o’connor resumed his role 
as the company’s senior independent 
nonexecutive 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 
reappointment and andrew mciver will 
retire by rotation and seek reelection 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 reappoint 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 
£136440 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 
£10000 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 
 nonexecutive 
a mciver executive 
d hobday executive
j wilkinson executive 
n payne nonexecutive 
s o’connor senior independent 
  nonexecutive
b harris nonexecutive
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 disapplication 
of statutory preemption 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 01p each
fidelity 70860914 1492 
investments
dbs advisors 60893903 1282 
limited 
bonaire investment  44497096 936 
holdings limited 
bnp paribas  23176305 488 
arbitrage 
apollo nominees 19571740 412 
limited  winning moments 34 annual report and accounts 20072008 35
executive directors       
andrew mciver 1 500000 500000 210104 49 290107 290114
 2 250000 125000 010805  010807 010808  
 3 3920455 2784091 301106  011107 011109
 4  1161057 141207  011108 011109
 6 200000 133334 090506  011107 011109
dave hobday 2 240000 140000 081105  010807 010808
 3 3136364 246212 301106  011107 011109
 4 8   141207  011108 011109
 6 50000  090506  011107 011109
jim wilkinson 4  608173 010208  011108 011109
 7  1507726 010208  011107 011109
mark blandford       
nonexecutive directors
peter dicks  5      
sean o’connor        
brian harris       
nigel payne 1 250000 250000 290104 49 290107 290114
 2 75000  010805  010807 010808
 6 100000  090506  011107 011109
bob holt       
executive directors   
andrew mciver  1 3 520 1636 4  2160 90 1964 85
dave hobday 3 10 335 816 3 1180 2334 129 804 60
jim wilkinson 3 12 145 138   283 21  
mark blandford 3 5       64 6 
nonexecutive 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  2827 21
bob holt 3 9       39  
  1386  2639 7 1180 5212 240 5904 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 £2160326 2007 nigel 
payne – £2826747 
nigel payne became a nonexecutive 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 £1592372 
2007 £1414743 the average total 
emoluments of nonboard employees 
was £76575 2007 £77528 the ratio 
between the two averages was 2161 
2007 2311 
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 75000 11 
shares under the 2005 share plan and 
an interest in 33333 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 125000 
shares were released to andrew mciver 
125000 shares were released to nigel 
payne and 100000 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 nonexecutive director
share awards granted under the 3 
sportingbet 2006 restricted share plan  
during the financial year 1136364 
shares were released to andrew mciver 
and 909091 shares were released to 
dave hobday in each case under the 
sportingbet 2006 restricted share plan
a provisional discretionary share bonus 4 
totalling 2698075 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 nonexecutive 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 66666 shares 
were released to andrew mciver 33333 
were released to nigel payne and 16666 
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  
nonexecutive director
jim wilkinson received an award  7 
under the sportingbet 2006 restricted 
share plan of 1507746 shares on  
1 february 2008
dave hobday resigned as a director on 8 
8 may 2008 as a result 732323 shares 
were released on 8 july 2008 to him 
pursuant to the rules of the sportingbet 
2006 restricted share plan and 338747 
shares were released to him under 
other company schemes  his award of 
246212 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 20072008 37
executive directors
andrew mciver 1 1158197 301031 
dave hobday 2 8 629886 119389 
jim wilkinson  
mark blandford 7  12480173
nonexecutive directors 
peter dicks 3 465859 170440 
sean o’connor 4 461265 197848 
brian harris 5 263010 136593 
nigel payne 6 176398 176398
bob holt 7  90440
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 
50000 shares on 1 august 2007 and 
75000 shares on 23 october 2007 
following releases of awards under the 
2005 share plan of which 17994 shares 
and 30750 shares respectively were 
sold to meet the resulting tax liability 
he received an interest in 1136364 
shares on 23 october 2007 following the 
release of an award under the 2006 share 
plan of which 553182 shares were sold 
to meet the resulting tax liability he 
received an interest in 66666 shares on 
23 october 2007 following the release 
of a share based performance award of 
which 32454 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 202919 shares of which 83197 
shares were sold to meet the resulting tax 
liability he purchased 100000 shares on 
29 january 2008
dave hobday resigned as a director on 2 
8 may 2008 he received an interest in 
40000 shares on 1 august 2007 and 
60000 shares on 23 october 2007 
following releases of awards under the 
2005 share plan of which 14396 shares 
and 24600 shares respectively were 
sold to meet the resulting tax liability he 
received an interest in 909091 shares on 
23 october 2007 following the release of 
an award under the 2006 share plan of 
which 442546 shares were sold to meet 
the resulting tax liability he received an 
interest in 16666 shares on 23 october 
2007 following the release of a share 
based performance award of which  
8114 shares were sold to meet the 
resulting tax liability   
peter dicks purchased 50000 shares  3 
on 1 february 2008 and 119000  
shares on 27 march 2008   
he received an interest in 126417  
shares on 31 july 2008 forming part  
of his nonexecutive remuneration
sean o’connor purchased 50000 4 
shares on 30 january 2008 and 100000 
shares on 10 june 2008 he received 
an interest in 126417 shares on 31 july 
2008 forming part of his nonexecutive 
remuneration
brian harris received an interest in 5 
126417 shares on 31 july 2008 forming 
part of his nonexecutive remuneration
nigel payne received an interest in 6 
75000 shares on 23 october 2007 
following the release of an award under 
the 2005 share plan and an interest in 
33333 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 
126417 shares on 31 july 2008 forming 
part of his nonexecutive 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 performancerelated 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 performancerelated •	
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 decisionmaking 
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 nonexecutive 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 prorated amounts
each nonexecutive 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
11583883 options were exercised during 
this financial year 2007 1687875 of 
which 3244445 options were exercised by 
directors of the company 2007 £nil  
the price paid by participants for all awards 
under the appropriate share plans is 
£43450 the market price of shares at 31 
july 2008 was 3275p and the range during 
the financial period was 2950p to 5917p   
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 20072008 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 cashbased 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 20072008 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 noncompliance 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 eubased 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 monopolyorientated 
stance on online gambling and has 
started to permit a number of nonitalian 
bookmakers to obtain licences to operate 
online betting offerings from certain outlets 
such as newsagents bars and cafes
however italy currently requires that even 
eulicensed 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 20072008 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 
landbased 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 deeprooted 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
antionline 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 auditors 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 
executives 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 executives 
statement business review chairmans 
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 groups 
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 online 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 groups 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 20072008 45
noncurrent assets    
goodwill 12 530 444
other intangible assets 13 152 103
property plant and equipment 14 211 128
noncurrent receivables  05 05
  898 680
current assets 
trade and other receivables 15 82 91
cash and cash equivalents 16 494 345
  576 436
current liabilities    
trade and other payables 17 528 341
interest bearing loans and borrowings 17 56 53
contingent consideration 17 45 
  629 394
net current liabilitiesassets  53 42
noncurrent liabilities    
deferred consideration   01
longterm provisions 18 01 03
  01 04
net assets  844 718
equity    
issued share capital 20 05 04
shares to be issued 21 90 146
share premium 21 563 429
retained earnings 21 201 168
foreign exchange reserve 21 15 26
equity attributable to equity holders of the parent  844 721
minority interest   03
total equity  844 718
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 13642 10964
net gaming revenue 3 4 1470 1194
 
administrative expenses excluding exceptional items share option charge and amortisation of other  
intangible assets    1243  1145
group operating profit before exceptional items share option charge and amortisation of other  
intangible assets    227  49
other administrative expenses 
    exceptional items 5 120 268
    share option charge 7 80 99
    amortisation of other intangible assets 13 39 18
    
total administrative expenses  1482 1530
group operating loss  12 336 
finance income 9 08 12
finance costs 9 04 02
loss before taxation 6 08 326
taxation 10 35 12
loss for the year  43 338
loss for the year from discontinued operations 2  2813
group loss for the year  43 3151
loss attributable to minority interest   06
loss attributable to the equity holders of the parent  43 3145
loss per ordinary share – continuing operations    
basic 11 09p 77p
diluted 11 09p 77p
loss per ordinary share – continuing and discontinued operations    
basic 11 09p 732p
diluted 11 09p 732p winning moments 46 annual report and accounts 20072008 47
group loss after taxation  43 338
depreciation  37 56
software amortisation  28 14
other amortisation  39 18
impairment of goodwill   92
writeoff of property plant and equipment   51
share option charge  80 99
finance income  04 10
taxation  35 12
operating cash flows before movements in working capital  172 06
increasedecrease in receivables  07 16
increase in payables  179 04
cash generated by operations  344 14
income tax paid  14 13
net cash from operating activities  330 01
purchases of property plant and equipment 14 122 135
purchases of software 13 28 36
acquisition of subsidiary  46 31
interest received  04 11
cash used in investing activities  192 191
exercise of share options   01
new bank loans raised  03 53
net cash from financing activities  03 54
net increasedecrease in cash and cash equivalents in the year  141 136
net decrease in cash and cash equivalents in the year from discontinued operations 2  457
cash and cash equivalents at beginning of year  345 972
effect of foreign exchange rate changes  08 34
cash and cash equivalents at end of year 16 494 345
   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  11 42
net income recognised directly in equity  11 42
loss for financial year  43 3151
total recognised income and expense for the year  32 3109
attributable to   
equity holders of the parent  32 3115
minority interests   06
  32 3109
year ended
 
 
notes
the notes on pages 48 to 79 form part of these financial statements  winning moments 48 annual report and accounts 20072008 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 
iasifrs 
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 sharebased •	
payment  vesting conditions and 
cancellations  1 january 2009 
amendments to ifrs 1 firsttime •	
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 intercompany 
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 ie 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 20072008 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 interestbearing 
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 cashgenerating 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 pretax 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 
cashgenerating unit is estimated to be 
less than its carrying amount the carrying 
amount of the asset or cashgenerating 
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 cashgenerating 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 cashgenerating 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 20072008 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 cashgenerating units the value in use 
calculation requires the entity to estimate the 
future cash flows expected to arise from the 
cashgenerating 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 nonmarket 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 20072008 55
the prior year consolidated cash flow statement split between continuing and discontinued operations is as follows
group loss after taxation 338 2813 3151
depreciation 56 03 59
software amortisation 14  14
other amortisation 18  18
impairment of goodwill 92 2891 2983
loss on disposal of business  02 02
writeoff of property plant and equipment 51  51
share option charge 99 17 82
finance income 10 12 22
taxation 12 01 13
operating cash flows before movements in working capital 06 55 49
decrease in receivables 16 10 26
increasedecrease in payables 04 64 60
cash generated by operations 14 01 15
income tax paid 13  13
net cash from operating activities 01 01 02
purchases of property plant and equipment 135  135
purchases of software 36  36
acquisition of subsidiary 31 208 239
disposals  147 147
interest received 11 05 16
cash used in investing activities 191 350 541
exercise of share options 01  01
repayment of borrowings  108 108
new bank loans raised 53  53
net cash used in financing activities 54 108 54
net decreases in cash and cash equivalents in the year 136 457 593
cash and cash equivalents at beginning of year   972
effect of foreign exchange rate changes   34
cash and cash equivalents at end of year   345
   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 10964 2271 13235
net gaming revenue 1194 333 1527
administrative expenses excluding exceptional items share option charge and other amortisation 1145 206 1351
group operating profit before exceptional items share option charge and other amortisation 49 127 176
other administrative expenses   
    exceptional items 268 2966 3234
    loss on disposal of fixed assets  02 02
    share option charge 99 17 82
    amortisation of other intangible assets 18  18
total administrative expenses 1530 3157 4687
group operating loss 336 2824 3160
finance income 12 01 13
finance costs 02 11 09
loss before taxation 326 2812 3138
taxation 12 01 13
loss for the year 338 2813 3151
discontinued operations arose from the 
passing of the uigea in the us in october 
2006 and the subsequent decision to 
close the usfacing part of paradise poker 
and dispose of the remaining usfacing 
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 20072008 57
amounts wagered 6539 4393 32  10964 2271
net  gaming revenue 1038 124 32  1194 333
depreciation 43 07 03 17 70 03
administrative expenses 
excluding exceptional items 
share option charge 
and other amortisation 930 77  68 1075 203
group operating profit before 
exceptional items share option 
charge and other amortisation 65 40 29 85 49 127
other administrative expenses      
    exceptional items 268    268 2966
    share option chargecredit 84 15   99 15
    other amortisation 18    18 
total administrative expenses 1343 99 03 85 1530 3157    
operating profitloss 305 25 29 85 336 2824
balance sheet information     
total assets 965 100 51  1116 
total liabilities 339 59   398 
expenditure incurred to  
acquire property plant  
and equipment and  
intangible assets 165 06   171 
amounts wagered 8116 5425 101  13642 
net gaming revenue 1261 192 17  1470 
depreciation 40 06  19 65 
administrative expenses 
excluding exceptional items 
share option charge 
and other amortisation 990 113 27 48 1178 
group operating profit before 
exceptional items share option  
charge and other amortisation 231 73 10 67 227 
other administrative expenses      
    exceptional items 120    120 
    share option charge 58 13  09 80 
    other amortisation 39    39 
total administrative expenses 1247 132 27 76 1482     
operating profitloss 14 60 10 76 12 
balance sheet information      
total assets 1339 135   1474 
total liabilities 537 93   630 
expenditure incurred to  
acquire property plant  
and equipment and  
intangible assets 140 10   150 
   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 13075 367 200 13642
net gaming revenue  903  367 200  1470
amounts wagered 10391 294 279 10964
net gaming revenue 621 294 279 1194
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  1605 1273
promotional bonuses  135 79
net gaming revenue  1470 1194
31 july 
2008 
£m  
31 july 
2007 
£m  
of activity sports betting casino gaming 
and poker winning moments 58 annual report and accounts 20072008 59
7 share option charge
6 loss before t axation
share option charge  76 99
social security costs on share options 04 
 80 99
2008  
£m
2007  
£m
net foreign exchange losses   01 06
depreciation of property plant and equipment   37 56
amortisation of software   28 14
auditors’ remuneration    
    audit services   04 03
    audit of subsidiaries pursuant to legislation   01 01 
    tax services   02 03
    corporate finance transactions    02
rental income   02 
   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 chargingcrediting
continuing 
£m
continuing 
£m
notes 
£m
discontinued 
£m
discontinued 
£m
2007 
£m
2008 
£m
reorganisation costs relating to uigea a 33  33  88  54 142
transfer of licensable activities to the  
channel islands b 40  40  55   55
transfer of emea and poker customer services  
operation to dublin c  03  03  19   19
paradise – boss migration d 03  03  28   28
pci dss compliance e     24   24
impairment of goodwill paradise poker and  
sportingodds f     92  1823 1915
write off of property plant and equipment g     31   31
reversal of payable from prior year h     69   69
impairment losses relating to the disposal of  
the us business i       1089 1089
transfer of spanish customer services operation  
to dublin j 47  47     
  120  120  268  2966 3234
a the impact of the passing of the 
uigea and the subsequent decision to 
close the usfacing 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 £31m 
2007 £78m and retention and loyalty 
payments to retained employees of £02m 
2007 £64m
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 oneoff 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 
writedown 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 sportingoddscom 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 £69m
i impairment losses of £1089m relate to 
the disposal of the usfacing 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 oneoff marketing 
the termination payment to the former 
spanish partner and other related costs
2008  
£m
2007  
£m winning moments 60 annual report and accounts 20072008 61
directors’ remuneration  
salary and fees  14 15 
bonuses  09 08
compensation for loss of office  12 
share based payments  17 36
total emoluments  52 59 
pension contributions  02 02  
  54 61
8 st aff costs
9 net interest receivablepayable
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  335 400
social security costs  22 22
pensions costs  12 14
  369 436
bank loans and overdrafts  04 
amortisation of loan arrangement fees   02
  04 02
interest receivable  08 12
  04 10
further nonstatutory 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 £638000 
and tax losses £7196000 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 10a analysis of charge in the period 
current tax  
uk corporation tax on profits of the period   12 
overseas taxation   27  13
adjustments to overseas taxation in respect of previous periods   03 
total current tax note 10b   42  13
deferred tax
current year movement to deferred tax   07  
total deferred tax note 10c   07  
tax on profit on ordinary activities  35  13
note 10b factors affecting the tax charge for the period
profit on ordinary activities before tax   08  3138
profit on ordinary activities multiplied by the   
standard rate of corporation tax in the uk 28 2007 30   02  941
effects of
expenses not deductible for tax purposes   44  981
effect of lower tax rates on overseas earnings   35  33
tax losses arising in year   26 
other timing differences   06 
adjustments to tax charge in respect of previous periods   03 
current tax charge for the period note 10a   42  13
note 10c provision for deferred tax deferred tax asset
other timing differences   07  
provision for deferred tax at 28 2007 30   07  
at the beginning of the year     
current year movement   07  
at the end of the year deferred tax asset   07  
2008  
£m
2007  
£m winning moments 62 annual report and accounts 20072008 63
cost 
at 1 august 2006   4151
additions   195
disposals   1323
exchange adjustments   181
other movements   382
at 1 august 2007   2460
additions   47
exchange movements   02
other movements   37
as at 31 july 2008   2546
impairment losses 
at 1 august 2006   635
impairments   2905
disposals   1323
exchange adjustments   201
at 1 august 2007   2016 
as at 31 july 2008   2016
net book value 
at 31 july 2008   530
at 31 july 2007   444
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 noncash 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 09p 77p 655p 732p
diluted 09p 77p 655p 732p
adjusted earnings per ordinary share
before exceptional items share option charge and amortisation    
basic 43p 12p 32p 44p
diluted 38p 11p 29p 40p
2008 
basic earnings 43 338 2813 3151
exceptional items 120 268 2966 3234
share option charge 80 99 17 82
amortisation 39 18  18
adjusted earnings 196 47 136 183
continuing 
2007 
£m 
discontinued 
2007 
£m 
total 
2007 
£m 
2008 
£m 
12 goodwill
£m 
number of shares in issue  472011023 432946844
employee share schemes  38686358 38872648
contigent consideration  19187386 1934593
fully diluted number of shares in issue  529884767 473754085
weighted average number of shares in issue  454244357  429655714
employee share schemes  38686358 38872648
contigent consideration  19187386 1934593
fully diluted number of weighted average number of shares in issue  512118101  470462955
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 20072008 65
cost   
at 1 august 2006 138  138
additions 36 52 88
disposals 34  34
at 1 august 2007 140 52 192
additions 28 87 115
as at 31 july 2008 168 139 307
amortisation and impairment losses   
at 1 august 2006 66  66
charge for the year 14 18 32
disposals 09  09
at 1 august 2007 71 18 89
charge for the year 28 39 67
exchange adjustments 01  01
as at 31 july 2008 98 57 155
net book value   
at 31 july 2008 70 82 152
at 31 july 2007 69 34 103
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  296 212
australia  234 232
  530 444
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 
pretax 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 46 01 101 14 162
additions 06  48 81 135
disposals 10  27 14 51
exchange movements 02  01 01 04
at 1 august 2007 40 01 121 80 242
additions 26  80 16 122
exchange movements   02  02
as at 31 july 2008 66 01 199 96 362
depreciation     
at 1 august 2006 25 01 45  71
charge for the year 07  52  59
disposals 04  09  13
exchange adjustments 01  02  03
at 1 august 2007               27 01 86  114
charge for the year 09  26 02 37
exchange adjustments   01 01 
as at 31 july 2008 36 01 113 01 151
net book value     
at 31 july 2008 30  86 95 211
at 31 july 2007 13  35 80 128
the depreciation charge in respect of assets held under finance leases was £nil  2007 £01m
2008  
£m
2007  
£m
   notes to the 
financial st atements  winning moments 66 annual report and accounts 20072008 67
bank loans   56 53
trade payables  89 47
other payables  16 11
customer liabilities  134 114
tax and social security  40 24
accruals and deferred income  231 130
contingent consideration  45 
open bets  18 15
  629 394
cash  336 246
short term cash deposits  136 71
restricted cash  22 28
  494 345
at 1 august  05 04
provision for receivables impairment  20 08
receivables written off during the year as uncollectable  06 07
at 31 july  19 05
up to 2 months past due  34 22
2 to 6 months past due  04 02
over 6 months past due  01 05
  39 29
trade receivables  59 34
provision for impairment of trade receivables  19 05
trade receivables net  40 29
deferred tax asset  07 
other receivables  21 43
prepayments and accrued income  14 19
  82 91 
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 
£39m 2007 £29m 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
noncurrent receivables relate to £05m 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 £12m 2007 
£28m held with barclays in connection with 
the share capital reduction exercise in 2005 
and £10m 2007 £nil held in designated 
accounts which have certain restrictions 
contingent consideration of £45m 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 £56m 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 
15 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 20072008 69
financial liabilities as per balance sheet  
trade and other payables 18 15 470 302
interest bearing loans and borrowings   56 53
provisions   01 03
 18 15 527 358
financial assets as per balance sheet  
trade and other receivables  61 72
cash and cash equivalents  494 345
  555 417
2008     
sterling 165 15 17 24 221
  165 15 17 24 221
2007     
sterling 35 20 04 19 78
 35 20 04 19 78
at 1 august 2006    07
fair value adjustment    04
at 1 august 2007    03
fair value adjustment    02
at 31 july 2008    01
included in current liabilities    
included in noncurrent liabilities    01
    01
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 £56m 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 
shortterm 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 20072008 71
authorised  
1000m 2007 1000m ordinary shares of 01p each  1000 1000
allotted issued and fully paid   
at 31 july 2007 432946845 shares of 01p each  433 421 
issues in respect of acquisitions 25062744 shares  25 10
other share issues in respect of exercised share options 11909203 shares  12 2
other share issues 2092231 shares  2 
at 31 july 2008 472011023 shares of 01p 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 eurosterling 
exchange rate and turkish lirasterling rate 
it assumes a  13 movement in the 
sterlingeuro exchange rate for the year 
ended 31 july 2008 2007 01 and a  
07 movement for the sterlingturkish lira 
exchange rate 2006 04  
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 13 2007 01 and 
07 2006 04 respectively then this 
would have had the following impact
if sterling had weakened against the euro 
and turkish lira by 13 2007 01 and  
07 2006 04 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 £56m 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 23529412 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 01p period of option
exercise price 
p
september 2002 100000 september 2005 – september 2009 83
december 2003 1155000 december 2006 – december 2010 395
january 2004 1645625 january 2007 – january 2011 49
february 2004 100000 february 2007 – january 2011 395
may 2004 50000 may 2007 – may 2011 94
october 2004 100000 october 2007 – october 2011 975
november 2004 160000 november 2007 – november 2014 131
august 2005 662250 july 2007 – july 2008 
may 2006 213427 november 2007 – november 2009 
november 2006 18406137 november 2007 – november 2009 
march 2007 869528 november 2007 – november 2009 
june 2007 149190 november 2008 – november 2009 
november 2007 8165675 november 2008 – november 2009 
december 2007 1964540 december 2008 – december 2009  
march 2008 2425829 november 2008 – november 2009 
june 2008 2519157 november 2009 – november 2011 
at 31 july 2008 there were 38686358 
options or awards over ordinary shares 
outstanding 7455593 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 35700 
relate to the hmrc approved scheme 
1955625 relate to the executive scheme 
1319300 relate to the unapproved 
scheme 662250 relate to the 2005 plan 
32535516 relate to the 2006 share plan 
213427 relate to conditional awards and 
1964540 to discretionary awards to 
executive directors
2008 2007
net profit   04 03 07 02 01 03
equity   04 03 07 02 01 03
euro
£m
turkish lira
£m
total
£m
euro
£m
turkish lira
£m
total
£m
2008 2007
net profit   04 03 07 02 01 03
equity   04 03 07 02 01 03
euro
£m
turkish lira
£m
total
£m
euro
£m
turkish lira
£m
total
£m
ended 31 july 2007 and 1533332 shares 
issued in respect of the sportingbet italia 
spa acquisition in prior years winning moments 72 annual report and accounts 20072008 73
22 sharebased payments
21 equity 22 sharebased payments continued
the movement in group equity of £123m 
2007 £3068m is wholly represented by 
the movements shown in equity reserves and 
share capital in notes 21 and 20 
the company operates five equitysettled 
sharebased 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 £56m represents a combination of 
settlement of consideration in relation 
to historic acquisitions of £92m 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  04 380 240 3232 68
acquisitions   48 94  
employee share options   01   
share option charge     82 
loss for the year     3120 
other movements     01 
foreign currency exchange      42
at 1 august 2007  04 429 146 193 26
prior year adjustment     25 
at 1 august 2007 restated  04 429 146 168 26
acquisitions  01 134 56  
share option charge     76        
loss for the year     43 
foreign currency exchange      11
at 31 july 2008  05 563 90 201 15
consideration in respect of current year 
acquisitions of £36m
 
 
 
no
 
 
 
no
weighted 
average 
exercise price 
p
weighted 
average 
exercise price 
p
2007 2008
outstanding at the beginning of the year 37 40271306 450 14309125
granted during the year  15996714  37180636
forfeited during the year   430 1425000
exercised during the year 04 11909203 90 1687875
lapsed during the year 71 5672460 520 8105579
outstanding at the end of the year 27 38686357 40 40271307
   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 3310625 2007 
3257375 had vested and were exercisable
the weighted average share price at the 
date of exercise of options exercised during 
the year was 442p 2007 445p
the weighted average fair value of each 
option granted during the year was 4427p 
2007 4402p
the following information is relevant in the 
determination of the fair value of options 
granted during the year under the equity
and cashsettled sharebased remuneration 
schemes operated by sportingbet plc
2008 2007
equitysettled  
options pricing model used blackscholes blackscholes
weighted average share price at grant date pence 4427p 4402p
exercise price pence nil nil
weighted average contractual life days 555 850
equitysettled  
expected volatility 50 50
expected dividend growth rate 2 2
riskfree 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 sharebased remuneration expense comprises  
equitysettled schemes  80 99
2008
£m
2007
£m winning moments 74 annual report and accounts 20072008 75
intangible assets  87 87
net assets  87 87
consideration   127
net assets acquired 100   87
goodwill arising on acquisition   40
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    40
contingent consideration – cash   51
contingent consideration – shares   36 
   127
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 £32m to 
the group’s net gaming revenue and £30m 
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 £1470m and 
group loss attributable to equity holders of 
the parent would have been £40m
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  19 17
land and buildings  
within 1 year  15 17
within 25 years inclusive  32 37
in more than 5 years  11 14 
  58 68
at 31 july 2008 the group had outstanding 
commitments for future minimum lease 
payments under noncancellable operating 
leases which fall due as follows
during the period prior to his appointment 
as chairman and nonexecutive director on 
1 february 2008 p dicks received £60000 
2007 £100000 in consultancy fees
s o’connor senior independent non
executive director provided marketing 
consultancy services to the group 
amounting to £nil 2007 £14167 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 20072008 77
amounts wagered  10964  10964   10964
      
net gaming revenue  1194  1194   1194
      
administrative expenses excluding exceptional 
items share option charge and other amortisation  1120 25 1145   1145
      
group operating profit before exceptional 
items share option charge and other amortisation  74 25 49   49
other administrative expenses  
exceptional items   268    268     268 
share option charge   99  99   99
other amortisation  30  30  12 18
total administrative expenses  1517 25 1542  12 1530
      
group operating lossprofit  323 25 348  12 336
      
finance income  12  12   12
finance costs  02  02   02
loss before taxation  313 25 338  12 326
      
taxation  12  12   12
loss for the year  325 25 350  12 338
      
discontinued loss for the year  2804  2804 03 06 2813
group loss for the year  3129 25 3154 03 06 3151
      
minority interest  06  06   06
      
loss attributable to the equity holders of the parent 3123 25 3148 03 06 3145
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 £25m resulting 
in the loss for the year being increased by 
the same amount to £3151m
firsttime 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 £3516m being its uk 
gaap carrying value
subsequent amortisation of £66m has 
been reversed leading to a net increase in 
operating profit of £30m 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 £35m 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 20072008 79
noncurrent assets
goodwill 3516   3516
other intangible assets  72  72
property plant and equipment 244 72  172
 3760   3760
current assets    
trade and other receivables 219  03 222
cash and cash equivalent 972   972
 1191  03 1194
current liabilities    
interest bearing loans and borrowings 105   105
contingent consideration 179   179
other payables 679   679
 963   963
net current assets 228  03 231
non current liabilities    
provisions 17   17
contingent consideration 188   188
 205   205
net assets 3783  03 3786
equity    
issued share capital 04   04
shares to be issued 240   240
share premium 380   380
retained earnings 3229  03 3232
foreign exchange reserve 68   68
equity attributable to equity holders of the parent 3785  03 3788
minority interest 02   02
total equity 3783  03 3786
noncurrent assets       
goodwill 458  458   14 444
other intangible assets     68 35 103
property plant and equipment 196  196  68  128
 654  654   21 675
current assets       
trade and other receivables 96  96    96
cash and cash equivalents 370 25 345    345
 466 25 441    441
current liabilities       
interest bearing loans and borrowings 53  53    53
other payables 332  332 09   341
 385  385 09   394
       
net current assets 81 25 56 09   47  
     
non current liabilities       
provisions 12  12 09   03
contingent consideration 10  01    01
 13  13 09   04
       
net assets 722 25 697   21 718
       
equity       
issued share capital 04  04    04
shares to be issued 130  130   16 146
shares premium 429  429    429
retained earnings 188 25 163   05 168  
foreign exchange reserve 26  26    26 
equity attributable to equity 
holders of the parent 725 25 700   21 721
minority interest 03  03    03
total equity 722 25 697   21 718
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 20072008 81
fixed assets    
investments 4 513 454
  513 454
current assets
debtors 5 422 343
cash at bank and in hand 6 12 28
  434 371
creditors – amounts falling due within one year 7 125 68
net current assets  309 303
provisions for liabilities 8  07
net assets  822 750
shareholders’ funds    
issued share capital 9 05 04
shares to be issued 10 75 130
share premium 10 549 429
retained earnings 10 193 187
equity shareholders’ funds  822 750
   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 auditors 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 executives 
statement business review chairmans 
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 companys 
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 online 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 
companys 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 20072008 83
investment in subsidiary undertakings  
as at 1 august 2007 454
acquisitions 07
revaluations 02
options issued to employees of subsidiary undertakings 54
 513 
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 sa administrative services costa rica
sporting odds limited online betting england
mlb limited contract call centre ireland 
anfield limited investment holding company bvi
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 straightline 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 straightline 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 postretirement 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  
nonmarket 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  37  68 
social security costs  02 02 
pensions costs  03 02  
  42  72
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 £69m 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 20072008 85
authorised  
1000m 2007 1000m ordinary shares of 01p each  1000 1000
allotted issued and fully paid  
at 31 july 2007  432946845 shares of 01p each  433 421 
issues in respect of acquisitions 25062744 shares  25 10
issues in respect of exercised share options 11909203 shares  12 2
other share issues 2092231 shares  2 
at 31 july 2008 472011023 shares of 01p each    472 433
at 1 august 2007 01 06 07
charged to the profit and loss account  05 05
reclassified as current liabilities  11 11
released in the year 01  01
at 31 july 2008   
bank loans  56 53
accruals and deferred income  24 15
contingent consideration  45 
  125 68
restricted cash  12 28
  12 28
other debtors  03 
prepayments and accrued income  01 01
owed by subsidiary undertakings  418 342
  422 343
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 spa 
‘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 £12m  
2007 £28m held with barclays in 
connection with the share capital reduction 
exercise in 2005 
contingent consideration of £45m 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 £56m 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 23529412 shares in respect of 
the acquisition of the business and assets 
of maslin properties limited and 1533332 
shares issued in respect of the sportingbet 
italia spa 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 20072008 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 38686358 
options or awards over ordinary shares 
outstanding 5536363 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 01p
date of grant
september 2002 100000 september 2005 – september 2009 83
december 2003 1155000 december 2006 – december 2010 395
january 2004 1645625 january 2007 – january 2011 49
february 2004 100000 february 2007 – january 2011 395
may 2004 50000 may 2007 – may 2011 94
october 2004 100000 october 2007 – october 2011 975
november 2004 160000 november 2007 – november 2014 131
august 2005 662250 july 2007 – july 2008 
may 2006 213427 november 2007 – november 2009 
november 2006 18406137 november 2007 – november 2009 
march 2007 869528 november 2007 – november 2009 
june 2007 149190 november 2008 – november 2009 
november 2007 8165675 november 2008 – november 2009 
december 2007 1964540 december 2008 – december 2009 
march 2008 2425829 november 2008 – november 2009 
june 2008 2519157 november 2009 – november 2011 
of the share options detailed above 35700 
relate to the hmrc approved scheme 
1955625 relate to the executive scheme 
1319300 relate to the unapproved scheme 
662250 relate to the 2005 plan 32535516 
the movement in company shareholders’ 
funds of £69m 2007 £3060m 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 £55m represents a combination of 
settlement of consideration in relation 
to historic acquisitions of £92m 
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 £36m and adjustments to 
the fair value of shares still to be issued 
following changes in the company’s share 
price of £01m
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    429 130 187 
prior year adjustment       
at 1 august 2007    429 130 187 
acquisitions    119 55  
share option charge    01  76
other movements      01 
loss for the year      69 
at 31 july 2008    549 75 193 
   notes to the parent company 
financial statements  
relate to the 2006 share plan 213427 relate 
to conditional awards and 1964540 to 
discretionary awards to executive directors winning moments 88 annual report and accounts 20072008 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 1030am 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 reappoint 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 reappoint peter dicks as a director of  
the company 
resolution 6 
to reappoint james wilkinson as a director 
of the company 
resolution 7
to reelect 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 £158316 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 £23747 
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 andor independent election 
candidates not exceeding £100000  
in total
make political donations to political •	
organisations other than political parties 
not exceeding £100000 in total and
incur political expenditure not exceeding •	
£100000 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 7c 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 01p 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 
47494863 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 01p
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 20072008 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 600pm 
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 600pm 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 providers 
should refer to their crest sponsor or 
voting service providers 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 times 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 355a 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 providers to 
procure that his crest sponsor or voting 
service providers takes 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  
wwwcapitaregistrarscouk
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 firstnamed 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 wwwicsaorguk 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
reappointment of directors 
resolutions 5 and 6 
under the company’s articles of 
association any director appointed  
during the year must stand for  
reappointment at the next annual general 
meeting having been appointed since the 
last annual general meeting peter dicks 
and james wilkinson submit themselves  
for  reappointment
peter dicks  
peter dicks 65 joined the group in january 
2000 as its nonexecutive chairman he 
resigned on 14 september 2006 and was 
reappointed 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 
reelection of directors 
resolution 7 
under the company’s articles of 
association each director must stand 
for reelection every three years you are 
therefore asked to reelect 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 20072008 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 preemptive 
share allotments in the company and also in 
respect of non preemptive 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 
resale 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 reissue 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 antidilution 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 
37563079 which represented 791 of the 
issued share capital at that time and which 
will represent 707 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 20072008 95
amounts wagered 14228 15262 20635 10964 13642
net gaming revenue 1088 1758 3033 1194 1470
operating profitloss before exceptional items 
share option charge and amortisation 217 605 1030 49 227
exceptional items 47 13 – 268 120
share option charge – – 67 99 80
amortisation 96 164 221 18 39
group operating profitloss 74 454 742 336 12
net finance income 20 46 30 10 04
profitloss before taxation 54 408 712 326 08
taxation – – – 12 35
profitloss for the period 54 408 712 338 43
loss for the period from discontinued operations    2813 
group profitloss for the period 54 408 712 3151 43
earnings per share     
basic 26p 134p 177p 732p 09p
basic adjusted 100p 186p 249p 44p 43p
diluted adjusted 68p 139p 238p 40p 38p
   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
wwwsportingbetplccom 
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 
wwwsportingbetplccom contains upto
date information including the company’s 
latest results the company’s financial 
calendar and archived webcasts 
wwwsportingbetsharescom 
shareholders who prefer to receive 
communications about the company by 
email are encouraged to register their details 
at the company’s shareholder portal –  
wwwsportingbetsharescom 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 wwwsportingbetsharescom or  
alternatively via wwwcapitaregistrars
com by clicking on the quickloginlink 
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  
wwwsportingbetsharescom 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  
wwwsportingbetplccom or  
wwwsportingbetsharescom  
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 
nonshareholders can register to receive 
notifications of the company’s annual 
report and accounts and webcasts at 
wwwsportingbetplccom 
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 
ie 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 wwwsharegiftorg
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
wwwfiredogdesigncouk wwwsportingbetplccom
sportingbet plc
4th floor  
45 moorfields 
london 
ec2 9ae
cont act us
t el 00 44 020 7184 1800 
fax 00 44 020 7184 1810 
email infosportingbetcom
investor relations
email investorsportingbetcom


Summary:
 winning moments 18 annual report and accounts 20072008 19
in july 2008 sportingbet brought 
inhouse the operation and 
management of miapuestacom 
the group’s spanish domain 
the contract termination payment 
and the cost of setting up the  
inhouse operation has resulted 
in an exceptional charge of £47m 
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 
vistabetcom 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 inhouse 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 
£237m 2007 £290m pre bonus 
deductions down 183 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 usfocused 
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 inhouse 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 inhouse in april 2008 winning moments 20 annual report and accounts 20072008 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 nonexecutive 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 inrunning 
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 23094 to 
31032 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 37 2007 29 
amounting to gross gaming revenue 
of £235m 2007 £158m
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 
outofstate 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 20072008 23
brian harris aged 62 joined 
sportingbet as a nonexecutive 
director in january 2003  
the founder and senior partner 
of a london law firm with an 
international clientele he has  
acted for foreign governments  
multinational 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  
nonexecutive 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  
nonexecutive director
brian harris
nonexecutive director 
nigel payne 
nonexecutive 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 rejoined the board 
as chairman and nonexecutive 
director in february 2008  peter 
started his career as a stockbroker 
and was cofounder 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 us 
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  nonexecutive 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 nonexecutive 
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