Shares of 32Red Plc have been suspended from trading on the Alternative Investment Market of the London Stock Exchange this morning following the company’s failure to deliver an interim financial report for the six months ended June 30th 2007.

32Red claims the delay in publishing the interim results relates to the proposed sale of BetDirect its fixed odds sports betting business, and the requirements of the IFRS accounting standards in relation to the treatment of assets held for sale.

The company expects the half-yearly report will be published when there is greater clarity in relation to the sales process.

Pursuant to AIM Rules, a listed company is required to announce half-yearly report within three months of the period end. Trading in 32 Red shares will remain suspended until publication of this report.

Lower profit margins, losses from the US online market ban and assets sales have began to take their toll in the more general online gaming sector. 32 Red recently indicated it was to sell Bet Direct which recently relocated to Gibraltar.

32Red at the time are said to have made a statement to the London Stock Exchange confirming they are in discussions regarding the sale of Bet Direct. The sports betting company was bought just 19 months ago for £12.5 million. However described as having poor trading figures it is said to have affected 32 Red's overall finances leading to the decision of putting it up for sale.

Reports of a sale have surprised the gaming industry after Bet Direct is said to have increased its customer base since the acquisition. Boyle Sport based in Ireland has been reported to be allegedly interested in the company.

It is doubtful this latest development as regards the 32 Red listing will help as regards the bargaining and conclusion of a deal on the betting business.