UK listed Gambling Shares Slump
Shares in online gaming companies crashed this morning after the shock weekend move by the US authorities to outlaw internet gambling prompted a massive sell off of their shares.
PartyGaming and 888 both said they will suspend their US operations once the new law comes into effect. President Bush is expected to sign the legislation within the next two weeks, after which it will be illegal for American banks and credit card companies to process payments to online gaming companies.
Shares in PartyGaming more than halved, plummeting by 61.75p to 45.5p in early morning trading. Sportingbet, which also said it has abandoned its planned merger with World Gaming, saw its shares collapse by more than 60%, from 118.25p to 66p. Shares in 888 tumbled by 45% to 80p.
The internet betting firms are continuing to comb through the proposed legislation with their legal teams. But PartyGaming, which relies on the US for 85% of its revenues, said the new law will make it “practically impossible” to operate in the US.
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http://business.guardian.co.uk/story/0,,1885577,00.html
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