We dropped a bomb on 'em of sorts last Saturday.
http://www.govtrack.us/congress/bill.xpd?bill=h109-4411
109th U.S. Congress (2005-2006)
H.R. 4411: Internet Gambling Prohibition and Enforcement Act
http://news.yahoo.com/s/afp/20061002/tc_afp/britainusinternetonlinegamblingcompany;_ylt=AvBMTK .Q.Xxf9nfpnaxXArcjtBAF;_ylu=X3oDMTA0cDJlYmhvBHNlYw M-
LONDON (AFP) - Shares in online gambling companies listed in London lost more than half their value after a dramatic move by US authorities to ban gambling on the Internet.
US
President George W. Bush was expected to sign the bill into law within two weeks, thereby making it illegal for finance companies to collect credit-card payments from customers using Internet gaming sites.
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."
PartyGaming shed as much as 62 percent of its value in Monday morning deals on the London FTSE 100 index of leading shares, while its smaller peers Sportingbet dived 73 percent and 888 Holdings slid 50 percent on the second tier FTSE 250.
Despite heavy losses to the gaming sector, London's main indices were trading higher by the half-way stage.
PartyGaming, the Gibraltar-based owner of the world's biggest online poker business, and 888 Holdings, also based in Gibraltar, have said they will suspend their business with US residents once the act was passed.
PartyGaming, 888 and Sportingbet currently earn the majority of their revenues in the United States. PartyGaming is the worst exposed, with 62 percent of its revenue delivered by US-based customers.
"This development is a significant setback for our company, our shareholders, our players and our industry," PartyGaming chief executive Mitch Garber said in a statement to the London Stock Exchange.
"While US horse race betting, state lotteries, fantasy contests and certain other online gaming activities have been exclusively protected under the new law, we are disappointed that the popularity and skill of poker in particular have not also been specifically protected."
Numis Securities analyst Richard Carter remained upbeat about the sector, however.
"Obviously the share prices have collapsed and they're discounting all the US business but I think there is still a lot of non-US business there and it is not as if these companies are going to disappear," he said.
"It's better now, because there is none of this uncertainty. Usually a crisis is the best time to make an investment because there is so much panic around and a lot of people are just getting out."
888 Holdings said suspension of its US activities would have "a material adverse impact on results for this year and beyond".
Sportingbet said it was "disappointed" by the decision in Congress, adding that it would have "a material impact" on trading. It pointed out that during the year to the end of July, 2006, 62 percent of the company's gross win was generated from US-based customers.
Last month, 888 revealed that 52 percent of its revenues came from the United States.
Congress' backing for the gambling law came following the recent US arrests of BetonSports chief executive David Carruthers and Sportingbet chairman Peter Dicks over alleged illegal Internet gambling on sport.
Dicks has since resigned his post. The online gaming business last year generated around 15 billion dollars globally.
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