More online firms suspend US gambling operations
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.
Fairground Gaming said it was "confident" that its non-US operations, which account for 30 per cent of the company's turnover, were profitable, but stressed it attended to "urgently" introduce appropriate cost-cutting measures.
The company, which stressed that it had enough money to continue trading, added that it was "evaluating opportunities for further geographical diversification" in light of the US ban on internet gambling and was reviewing the strategy of consolidation.
The announcement by Fireone and Fairground Gaming follows yesterday's announcement by World Gaming that it has asked the London Stock Exchange to cease trading in its shares due to uncertainty about its future.
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