Australian Online Casino Stung By Fraud
Perth, Australia-based Online gamer My Casino [ASX:MYC] was taken for A$4.3 million (US$2.14 million) in what it describes as a “well-organized” fraud using faked credit cards last year.
The scam “severely undermined the marketing position of the casino in international markets,” the company says in a report to the Australian Stock Exchange (ASX). It offers no other details of the fraud.
Meanwhile “the entrance of many more gaming sites online has further compounded the situation over the past nine months. This increased competition has reduced industry margins and the number of players visiting our site,” the company says.
My Casino has taken steps to reduce staff and running costs, the company said. Directors are said to be considering “various options” that will allow the best possible return on the company’s investment in the online casino industry.
Operating revenue for the year to December 31 2000 was A$3.5 million ($1.74 million) but abnormals, including the fraud loss, cost A$8.6 million ($4.28 million). This resulted in a net loss of A$11.26 million ($5.6 million).