Feeds

Gaming firms in freefall as US bans online betting

War-on-terror's poker face

Boost IT visibility and business value

Shares in online gambling companies like Partygaming are in freefall this morning after the US Congress unexpectedly passed anti-online gambling laws late on Friday.

The bill makes it illegal for credit card companies to process payments to gambling firms. PartyGaming saw 60 per cent of its value disappear in early trading this morning.

The Safe Port Act is expected to be signed into law by George W Bush in the next two weeks. PartyGaming said in a statement to the Stock Exchange that if the bill is signed it will have to stop taking all cash bets from US punters. More than half of the company's revenue comes from US residents.

888Holdings is suffering a similar meltdown on the markets. Its share price has also fallen more than 45 per cent. In a statement to the Stock Exchange the company said that although the precise impact of the legislation was not clear it was obvious Congress is intent on marking all forms of internet gambling as illegal.

888 said in the six months ended 30 June 2006 52 per cent of its revenues came from US customers.

Sportingbet is also down almost 60 per cent.

The Safe Port Act is primarily aimed at providing some $3.4bn spending in making ports safe in The War Against Terror. Much of the money will be spent inspecting containers - described by one Congresswoman as having "the potential to be the Trojan Horse of the 21st Century."®

Boost IT visibility and business value

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.