Wednesday, October 11, 2006

Two online gambling firms have announced that they are suspending their
operations in the US ahead of the imminent implementation of new laws
restricting internet gaming. In separate statements released this morning,
Fairground Gaming and Fireone said that they would immediately cease trading
in the US once the unlawful internet gambling enforcement act had been
ratified. The legislation, due to be approved by US president George Bush in
the near future, makes it illegal for banks and credit card companies to
process gaming payments. Online gambling firms, which make a great deal of
their profits from the US market, have seen their share prices plummet since
the new law was adopted by the US congress. Fairground Gaming said that it
would suspend the company's online casino and poker games to its US-based
customers following the implementation of the legislation, while Fireone
said that only non-US internet gamblers would be able to use its
multi-currency credit and debit card and FirePay electronic wallet
processing facilities. Both companies said that they were planning to
restructure their businesses and cut costs in the wake of the US
legislation.

Fireone said it expected the law to have a "significant negative impact" on
its business and had "embarked upon a restructuring of its operations and
cost base" as a result.

Fairground Gaming said it was "confident" that its non-US operations, which
account for 30 per cent of the company's turnover, were profitable, but
stressed it attended to "urgently" introduce appropriate cost-cutting
measures.

The company, which stressed that it had enough money to continue trading,
added that it was "evaluating opportunities for further geographical
diversification" in light of the US ban on internet gambling and was
reviewing the strategy of consolidation.

The announcement by Fireone and Fairground Gaming follows yesterday's
announcement by World Gaming that it has asked the London Stock Exchange to
cease trading in its shares due to uncertainty about its future.