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Gambling firms see shares plunge Gambling firms see shares plunge
(about 1 hour 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%.
Both 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. Sportingbet shares fell by nearly 60% while Empire Online shares slid 27%.
The legislation is part of a clampdown on online gaming in the US. 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 would make it illegal for banks and credit card firms to process online gaming payments from the US. The law, part of a 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.
Unrelated bill '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.
The bottom line is simple. Internet gambling is illegal Bill Frist, US Senate Majority Leader See Partygaming shares The bottom line is simple. Internet gambling is illegal Bill Frist, US Senate Majority Leader See Partygaming shares href="http://part of a clampdown on online gaming in the US." class="">See Sportingbet shares href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/33558/intraday.stm" class="">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.
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.
"Congress has grappled with this issue for 10 years and during that time we have watched this shadow industry explode," said Bill Frist, Senate Majority Leader."Congress has grappled with this issue for 10 years and during that time we have watched this shadow industry explode," said Bill Frist, Senate Majority Leader.
"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."
UK betting giant William Hill recently said it was closing its US gaming business pending clarification of the industry's legal position.UK betting giant William Hill recently said it was closing its US gaming business pending clarification of the industry's legal position.