Thursday, October 12, 2006

BRITISH firms continued to feel the strain of a crackdown on internet
gambling in the United States as two more firms abandoned operations across
the Atlantic.
London-based casino Leisure & Gaming said it was "no longer appropriate" for
the company to accept US customers after Congress approved the Unlawful
Internet Gambling Enforcement Act. It also revealed it was considering
selling its US operations after receiving "a number of approaches", sending
its shares up nearly 10% yesterday. Shares fell 86% last week in the
aftermath of the new legislation. There was a less positive response to
FireOne's decision to pull out of the US and its shares dived by more than a
quarter. The company, which provides payment services to the online gaming
sector, has lost 72% of its value since Monday last week. The Bill passed by
Congress specifically outlaws banks and credit cards processing payments to
internet casinos. FireOne said: "The Act will have a significant negative
impact on the business." It said it expected President George Bush to sign
the Bill shortly.