Gambling shares slump after U.S. act approved PartyGaming, 888 Holdings prepare to fold U.S. operations
By Simon Kennedy, MarketWatch Last Update: 6:58 AM ET Oct 2, 2006
LONDON (MarketWatch) — Shares in U.K.-listed online gambling companies including PartyGaming and 888 Holdings plummeted Monday after the U.S. Congress unexpectedly passed an act that could cripple the industry by cutting off its revenue flows. PartyGaming (UK:PRTY: news, chart, profile) and 888 Holdings (UK:888: news, chart, profile) both said they will shut down their U.S.-facing operations once the act is signed into law by President Bush, which is expected to happen in the next two weeks. Other firms, including Sportingbet (UK:SBT: news, chart, profile) , whose former chairman was recently arrested in the U.S. under anti-gambling laws, said they are examining their options, but added the act could have a significant negative impact on their performance. Chart of UK:PRTY Shares in PartyGaming slumped 58% to 45 pence a share, having touched an all-time low of 40.25 pence in earlier trading. Volume was heavy, with around 180 million shares changing hands in the first two hours of trading. Shares in 888 Holdings gave up 34%. Sportingbet shares dropped 58% and World Gaming Plc (UK:WGP: news, chart, profile) was the biggest faller, losing 81% of its value after it also announced that takeover talks with Sportingbet had been scuppered by the act. Also see London Markets. Congress attached the anti-gambling measures to the Safe Ports Act, an unrelated security bill that was passed on Saturday.
The iGaming market in Ontario was recently regulated and Push Gaming is now set to enter the market after fulfilling the necessary regulatory requirements. The B2B gaming provider has confirmed that it has registered with the Alcohol and Gaming Commission of Ontario, which enables it to start offering its services and collaborate with authorized service providers in the province. This is exciting news for Push, as well as for the iGaming industry in Ontario.
Tom Horn Gaming is a well-known name in the iGaming software solutions industry, and the company has been working hard to bolster its market presence in recent months. The latest move in this regard is a content deal with the iGaming and betting operator, Interwetten. This deal will lead to the provider’s popular gaming titles being available to even more gambling enthusiasts.
Under the terms of the agreement, Stakelogic Live will supply its entire suite of games to Relax Gaming (RG) customers via its Silver Bullet platform, which is used by some of the largest operators in the industry. The games will be made available in a variety of languages, including English, German and Finnish. Stakelogic Live launched its first game, Auto-Roulette, in December 2020 and has rapidly grown its portfolio to include a wide range of popular live casino games.