INTHENEWS – www.inthenews.co.uk
Tuesday, 10 Oct 2006 10:16
The new US law bans banks from processing online gambling payments
Two online gambling firms have announced that they are suspending their operations in the US ahead of the imminent implementation of new laws restricting internet gaming.
In separate statements released this morning, Fairground Gaming and Fireone said that they would immediately cease trading in the US once the unlawful internet gambling enforcement act had been ratified.
The legislation, due to be approved by US president George Bush in the near future, makes it illegal for banks and credit card companies to process gaming payments.
Online gambling firms, which make a great deal of their profits from the US market, have seen their share prices plummet since the new law was adopted by the US congress.
Fairground Gaming said that it would suspend the company’s online casino and poker games to its US-based customers following the implementation of the legislation, while Fireone said that only non-US internet gamblers would be able to use its multi-currency credit and debit card and FirePay electronic wallet processing facilities.
Both companies said that they were planning to restructure their businesses and cut costs in the wake of the US legislation.
Fireone said it expected the law to have a “significant negative impact” on its business and had “embarked upon a restructuring of its operations and cost base” as a result.
THE COMPLETE ARTICLE CAN BE READ AT INTHENEWS – www.inthenews.co.uk