Billions of pounds were wiped off the value of online gaming stocks today after a controversial move to prevent internet gambling in the United States.
Shares in the sector tumbled by as much as 80% as investors reacted with dismay to new laws in the US which ban banks and credit card companies from processing payments to online casinos.
The legislation was a major blow for firms such as Party Poker owner PartyGaming and 888 Holdings, which rely heavily on the US for business.
The two companies said today that they will suspend business in the US indefinitely once President George Bush signs the Bill into law - a move expected within two weeks.
Shares in PartyGaming tumbled 61% while 888 was down 45% and Sportingbet was off 70%. World Gaming plummeted 80% after it was also hit by the end of takeover talks with Sportingbet, and online money transfer company Neteller fell 60%.
The Unlawful Internet Gambling Enforcement Act effectively stops anyone in the US from placing bets on the internet even if the casino is based overseas, although it does not include horseracing and state-owned lotteries.
Last month 888 revealed that 52% of its revenues came from the US, while PartyGaming has around 75% of its business in America.
PartyGaming also said it would halt operations in the US “indefinitely” once the Bill becomes law.
