Two more London casinos fall victim to ban
The new law restricting internet gambling in the United States continues to send shock-waves throughout the industry.
London-based Leisure and Gaming and Fairground Gaming have joined the ranks of companies that have or are on the brink of suspending operations in the US due to Congress’s decision to ban financial institutions from processing gambling transactions. A third company, FireOne also announced yesterday that it will cease operations effective on the day the new law takes effect. FireOne trades shares on the Alternative Investment Market. With the majority of the industry’s revenues racked up from its US customer base, the ban has hit the industry with brute force.
World Gaming announced Monday that it has ceased share trading in light of the ban, citing a loss of 95 percent of its revenue. While admitting it may be in breach of loan conditions, the company asked for trading to be suspended due to its “fundamental uncertainty over its ability to continue trading.� While Fairground fell from 8.5p to 14.5p, it plans to carry on operations despite the fact that the US fallout has wiped out 70 percent of its regular clientele. Other figures yesterday saw Leisure and Gaming rise from 0.75p to 8.75p, while FireOne lost 17.5p to 50p. Although Leisure and gaming is gearing its focus toward its domestic and Italian interests a decision on whether to sell or suspend its US operations are imminent.
The Unlawful Internet Gambling Enforcement Act is slated to be signed off on in a matter of weeks by US President George Bush.
-Danny Davis