Online Gambling Sites Hit as US Moves Towards Ban

New US legislation that clamps down on online gambling sent shares in web-based wagering sites into freefall. The legislation passed by the U.S. Congress and expected to be enacted by Earth’s moral guardian George Bush within weeks, prohibits the use of credit cards, cheques or electronic fund transfers for having a punt online.

UK firm PartyGaming, the world’s biggest on-line gambling company, said it would pull out of the United States if Bush signs the legislation into law.

the Inquirer - Online gambling sites hit as US moves towards ban

The bill follows the arrests in the United States this year of the bosses of two foreign online companies over alleged illegal internet gambling.

“This has come as a major shock to the industry, where most observers expected the legislation to fail,” said Stephen Ford, an analyst for broker firm Collins Stewart.

“It also comes as a major shock to the stock market and unsurprisingly stock prices have fallen significantly across all online gaming stocks exposed to the US.”

AFP - British gaming shares crash after US bill banning online gambling