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| Version 3 | Version 4 |
|---|---|
| Gambling firms see shares plunge | Gambling firms see shares plunge |
| (30 minutes later) | |
| Shares of online gaming firms have plunged after the US Congress passed a bill cracking down on internet gambling, threatening their business. | Shares of online gaming firms have plunged after the US Congress passed a bill cracking down on internet gambling, threatening their business. |
| Shares in Partygaming fell by nearly 60% in London trade, while shares in 888 Holdings tumbled by more than 45%. | Shares in Partygaming fell by nearly 60% in London trade, while shares in 888 Holdings tumbled by more than 45%. |
| Sportingbet shares fell by nearly 60% while Empire Online shares slid 27%. | Sportingbet shares fell by nearly 60% while Empire Online shares slid 27%. |
| Several firms have said they could stop taking bets from US customers if the bill is signed into law by President George W Bush in the next two weeks. | Several firms have said they could stop taking bets from US customers if the bill is signed into law by President George W Bush in the next two weeks. |
| The law, part of a sustained clampdown on online gaming in the US, would make it illegal for banks and credit card firms to process online gaming payments from the US. | |
| 'Shadow industry' | 'Shadow industry' |
| Companies in the online gambling arena have faced a turbulent year as the threat of a legal crackdown from the US has depressed share prices. | Companies in the online gambling arena have faced a turbulent year as the threat of a legal crackdown from the US has depressed share prices. |
| I can understand investors will feel a bit of panic Gigi Levy, 888 Holdings See Partygaming shares See Sportingbet shares See Empire Online shares | |
| Bosses from two firms, Sportingbet and Betonsports, were arrested on illegal gambling charges. | Bosses from two firms, Sportingbet and Betonsports, were arrested on illegal gambling charges. |
| UK betting giant William Hill recently said it was closing its US gaming business pending clarification of the industry's legal position. | |
| Most analysts expected there would not be enough time for US Congress to pass a specific law against online gambling before next month's mid-term elections. | Most analysts expected there would not be enough time for US Congress to pass a specific law against online gambling before next month's mid-term elections. |
| But lawmakers took the industry by surprise when an "Unlawful Internet Gambling Enforcement Act" was eventually attached to an unrelated bill aimed at improving port security. | But lawmakers took the industry by surprise when an "Unlawful Internet Gambling Enforcement Act" was eventually attached to an unrelated bill aimed at improving port security. |
| 'Clear implications' | |
| One of the firms set to be affected by the new law said its passage had come as a surprise. | |
| "It has a specific criminal offence for taking these funds which is something completely new," Gigi Levy, chief operating officer of 888 Holdings, told the BBC. | |
| "It is quite clear that the bill as is has a very clear implication on the legality of our activities in the US." | |
| The bottom line is simple. Internet gambling is illegal Bill Frist, Senate majority leader | |
| Mr Levy said his company was less dependent on the US market than it had been a year ago, having promoted itself in other countries. | |
| "I can understand investors will feel a bit of panic," he added. | |
| "We will build our business back up to where it is today. We are quite confident about that." | |
| Gaming firms which have floated their shares over the past 18 months warned investors that their prospects could be affected by legal uncertainties in the US. | |
| President Bush is thought unlikely to veto a bill which a senior Republican said was now needed to regulate a "shadow industry". | |
| "Congress has grappled with this issue for ten years," Bill Frist, Senate Majority Leader, said. | |
| "For me as majority leader, the bottom line is simple. Internet gambling is illegal." | "For me as majority leader, the bottom line is simple. Internet gambling is illegal." |