Online Gambling Firms Weigh Up Continued U.S. Presence
At last the efforts of the anti-gambling lobby in the U.S. appear to have paid off. Last week the Unlawful Internet Gambling Enforcement Act was attached to unrelated legislation concerning U.S. port regulations, and made its successful way through the Senate. The Act is designed to prevent American residents from participating in gambling and sports betting activities online and news of its success has raised a number of questions in online gambling circles. According to one online gambling media firm, Israeli-owned PokerStars is seriously considering withdrawing its activities from the U.S. market. The comments were made by the firm’s management although no decision has yet been made.
Similarly, chief executive of PartyGaming, Mitch Garber, told Bloomberg News that the Act poses a significant setback for the firm and its investors. “While U.S. horse-race betting, state lotteries, fantasy contests and certain other online gaming activities have been exclusively protected under the new law, we are disappointed that the popularity and skill of poker in particular have not also been specifically protected” Garber said. Bodog’s colorful CEO Calvin Ayre was also prompted to issue a statement through Gambling911.com, in which he offered a note of calm. “Bodog is a broad based digital entertainment company that has long ago ceased to be dependent on any one revenue channel.” Ayre said. “Bodog will continue to monitor things as they unfold but is not expected to make any changes until our study is completed.” A subsequent statement from Empire Online advised that the firm has begun an in-depth review of the Act’s impact to its current business activities. The statement concluded: “Presently it is difficult to assess the exact effect of this legislation, which could have a material impact on future earnings.”
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