This one hit the markets running today. Despite negative publicity it was well supported so I jumped in for a small holding--anyone else joining in?? I am hoping for a good run up before the shorters get going.

Reuters - Sat Sep 30, 2006

US Congress approves Internet gambling ban bill - By Peter Kaplan
(Updates with final approval of House)


Most forms of Internet gambling would be banned under a bill that received final U.S. congressional approval early Saturday.

The House of Representatives and Senate approved the measure and sent it to President George W. Bush to sign into law.

The bill, a compromise between earlier versions passed by the two chambers, would make it illegal for banks and credit card companies to make payments to online gambling sites.

Democrats had accused Republicans of pushing the bill to placate its conservative base, particularly the religious right, before the Nov. 7 congressional elections.

"It's been over 10 years in the making. The enforcement provisions provided by this bill will go a long way to stop these illegal online operations," said Sen. Jon Kyl, an Arizona Republican and a chief sponsor of the measure.

Negotiators from the Republican-led House and Senate reached a deal on the legislation Friday and attached it to unrelated legislation to bolster port security, which the Congress approved.

The final bill dropped earlier provisions opposed by some gaming interests that would have clarified that a 1961 federal law banning interstate telephone betting also covers an array of online gambling.

Investors in British-based gaming companies such as BETonSPORTS Plc (BSS.L: Quote, Profile, Research), Partygaming Plc (PRTY.L: Quote, Profile, Research) and 888 Holdings Plc (888.L: Quote, Profile, Research) have tracked the legislation.

Senate Majority Leader Bill Frist, a Tennessee Republican and potential 2008 presidential candidate, recently appeared at a hearing in Iowa -- the state that holds the first presidential nominating contest for the 2008 election -- to listen to concerns about Internet gambling.

at least they have dropped betting by telephone...

Negotiators from the Republican-led House and Senate reached a deal on the legislation Friday and attached it to unrelated legislation to bolster port security, which the Congress approved.

The final bill dropped earlier provisions opposed by some gaming interests that would have clarified that a 1961 federal law banning interstate telephone betting also covers an array of online gambling.

can't wait to buy in on monday         .......probably around the 20p mark!!

if it does IG INDEX will have to pay up the excess...i've a nice guaranteed tight stop loss..so would love to see them get shafted

Update from NROG: National Right For Online Gaming

CONGRESSIONAL UPDATE: The United States Congress has passed the Unlawful Internet Gambling Enforcement Act of 2006. After review (Click Here To Download) this bill is largerly ceremonial and it DOES NOT amend the Wire Act. The UIGEA deal only with payment methods inside the U.S. including banks wires, checks, and other US internet payment companies. Thankfully it appears to be business as usual for the most of the industry, but please understand the Wire Act Amendment is an issue that can easily be raised again. This fight is not over until that threat is gone.

http://www.saveonlinegaming.com/

maestro ... what a pathetic attitude! .... if u don't like IG, then use another broker or medium.

as for this whole sector, i just don't think it's the place to be for the time being .... there may well be some fast bucks to be made, but the odds don't feel that favourable

It was a minor victory for gaming companies, in that Frist dropped the important Wire Act part (as he knew this COULD NOT go through) and went underhand to put in place "toothless" legislation that is face saving for him.

This will have no effect on gaming, given what it says and how its going to go, and in fact should REMOVE a lot of the uncertainty, in that Frist and his Wire Act clarifications (which could effect the gaming world) had to be removed and is likely not to surface for a long time again.

Celebrate that this is a minor victory for the gaming companies, and their future is now a bit more secure IMO.



Measure to curb internet gambling falls short of applying existing laws to web

http://www.gambling911.com/internet-gambling-093006.html

Even House Homeland Security Committee Peter King Chairman Peter King, R-N.Y., who headed House-Senate negotiations on the port security bill seemed taken aback by the internet gambling measure.


The bill falls short of adding clarity to an already existing 1961 Wire Act that prohibits betting via phone across state lines and failed to apply that law to gambling on the web. This is being viewed as a slight victory for the online gambling community as it is now unlikely such revisions will ever be added in the future.

I am still in. Reduced my holding on thurday from 100,000 shares to 80,000. I am going to sit tight. The go ex divident on wednesday. Does anyone else in the investors room hold any of these shares. would be interesting to know.

The 20,000 partygaming that I sold. I bought these on 20th sept at 100.75p then on 28th sept. I sold them at 1.05p. This made a profit of 831. Have a nice week to all in the investors room, and keep posting. It is always good to hear other peoples views.

Sunday Telegraph
US Congress acts to ban online bets
By Richard Northedge and Louisa Gault
(Filed: 01/10/2006)

A bill making it illegal for banks and credit card companies to process payments to online gaming companies was unexpectedly approved by the US Congress yesterday, threatening to devastate the business of British companies such as PartyGaming, 888 Holdings and BetonSports.

The bill now needs only the approval of President George Bush to become law, and he is widely expected to sign it before the November 7 congressional elections to gain support from the political right.

A ban on online gaming payments will be a crippling blow to a fast-growing UK industry already reeling from the arrest of executives in America for allegedly breaching gaming laws.

PartyGaming was floated on the London Stock Exchange last year despite its prospectus containing 33 pages warning of risks such as a block on money transmission. The FTSE100 company earned 85 per cent of its revenues from US clients using its internet services.

Its shares have been highly volatile as the price reacted to threats to its business. They have fluctuated between 180p and 71p and were already 9p below their 116p flotation price before yesterday's move; they are expected to fall further this week along with smaller rivals.

The main losers will be the company's founders, even though they have sold 1.2bn of shares in the flotation and subsequently. Other investors include Coral Ventures, with an 8.6 per cent stake worth 369m on Friday, and Barclays with a 3 per cent holding.

US politicians have been trying to ban remote gaming for more than a decade and yesterday's move makes it almost certain that they will attain their goal. Previously, the Senate has resisted such efforts but Republican leader Bill Frist secured a breakthrough at the last minute by attaching the gaming provisions to an unrelated bill dealing with port security.

Frist said: "Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society. For me, the bottom line is simple: internet gambling is illegal. Although we can't monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws."

Andrew McIvor, the finance director of Sportingbet, which takes most of its bets from the US market, said last night: "We have not discussed it yet as a board and have not taken on what it really means for the company as yet. Things will unravel during the week."

The company's former chairman, Peter Dicks, was released on Friday after New York's state governor refused to sign an order extraditing him to Louisiana to face charges of illegal computer gambling.

The bill incorporates aspects of legislation put before the Senate earlier this year and was passed despite protests from the banking industry, which said the measures were an impractical and expensive burden. Once passed, financial organisations will have to block electronic transfers of funds to the gaming companies.

Although some clients may find alternative payment routes, the banks' clampdown would affect the majority of the companies' US business.

The port security bill was being debated on Friday when Frist added his gaming amendment. Debate continued until yesterday but despite Democrat opposition, members were reluctant to lose the core of the bill and passed it with the online gambling provisions. The House of Representatives and Senate both approved the bill early yesterday before passing it to Bush.

Online gaming groups face fall out from US congress internet gambling ban move
AFX


LONDON (AFX) - Shares in internet gambling companies such as Partygaming PLC and 888 Holdings PLC could be hit this week by news that US congress unexpectedly passed a bill this weekend that could help outlaw online gambling.

The new proposals would make it illegal for banks and credit card companies to settle payments to online gambling sites.

The measures were tacked on to a bill aimed at enhancing port security, and passed on Saturday.

The bill needs to be signed by President George Bush to become law.

The Sunday Telegraph said that is likely to happen before Nov 7 congressional elections, to help garner support from the political right. The move threatens to 'devastate' the business of some online gaming companies, it claimed.

Sportingbet PLC, which generates around two-thirds of its profits in the US, declined to comment on the situation.

The company's former chairman Peter Dicks was cleared to return to London on Friday after New York's governor refused to sign a warrant extraditing him to Louisiana, where he is charged with illegal online gambling.

He was the second British executive to be arrested in a recent crackdown in the US. BETonSPORTS PLC's former chief executive David Carruthers was arrested in July and charged with racketeering, conspiracy and fraud.

A spokesman for the company pointed out that BETonSPORTS has since closed down all its US websites.

888 and Partygaming could not be reached for comment. The Sunday Telegraph quoted a spokesman for the latter as saying 'we are evaluating the situation and have nothing further to add'.

Last week William Hill PLC said it had decided to stop accepting casino and poker business from clients with a US address or US issued credit card, pending clarification of laws regarding online gambling by US citizens.

amy.brown@afxnews.com

ab/ak



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The Times
October 02, 2006
Gambling online faces collapse in US after Senate ban
By Dominic Walsh

AMERICAs $6 billion (3.2 billion) internet gambling industry is facing meltdown after the US Senate pushed through a Bill at the weekend outlawing the processing of bets by banks and credit companies.

The surprise move, which is expected to spark a massive share sell-off, will prompt London-listed 888 Holdings to announce this morning that it is halting its entire US-facing operation, accounting for half its business.

PartyGaming, the worlds biggest internet gambling company, said last night that it was still evaluating the situation, although industry sources believe it will also announce a cessation of its services to American punters.

However Sportingbet, which was celebrating on Friday after a New York court released its former chairman, who had been facing gambling charges, will tell investors that it is still digesting the implications of the Bill.

Despite the Bills prescriptive nature, it excludes local online betting on horseracing, fantasy leagues and lotteries. It also has no impact on the hundreds of casinos and gambling emporia that dot America, ranging from the neon palaces of Las Vegas and Atlantic City to the riverboat casinos that ply their trade on the Mississippi.

One senior internet gambling executive said last night: This is the worst form of protectionism I have ever seen. This will drive internet gambling underground and consumer protection will go out of the window. The religious groups that lobbied for this may live to regret it.

The Unlawful Internet Gambling Enforcement Bill needs only to be signed by President Bush to become law. Legal sources predict that he will do so in the next two weeks, possibly as early as Wednesday.

The passing of the Bill in the early hours of Saturday surprised the industry. Although it had successfully negotiated Congress, its passage through the Senate looked likely to be blocked through lack of parliamentary time.

However, Bill Frist, the Republican leader in the Senate, got the measure through by attaching it to an unrelated Bill that enhances port security.

Gambling is a serious addiction that undermines the family, dashes dreams and frays the fabric of society, Dr Frist said. The bottom line is simple: internet gambling is illegal. Although we cant monitor every online gambler or regulate offshore gambling, we can police the financial institutions that disregard our laws.

The ban may drive some small companies out of business, although big operators such as 888 and PartyGaming will highlight the strong prospects of their non-US business.

However, 888 is expected to warn its shareholders in a Stock Exchange statement this morning that its withdrawal from America will force it to pare back its cost base, resulting in a significant hit against this years profits.

The Times
October 02, 2006
Need to Know: Global Business Briefing

The internet gambling industry is preparing itself for a massive share sell-off after the US Senate pushed through a bill outlawing the processing of bets by banks and credit companies.
888 Holdings, which is listed in London, will announce that it is halting its US-facing operation.

No morals them yanks,bit jealous me thinks,lets open it up again,and we can take the income tax after we kick them out,,sell on the bell for me,ding,,ding,roll on 8.00am

PartyGaming may suspend U.S. gaming business
Mon Oct 2, 2006 7:20 AM

LONDON, Oct 2 (Reuters) - Online gaming group PartyGaming Plc said on Monday it would stop doing business with U.S. customers if legislation passed there aimed at preventing gambling over the Internet was signed into law.

"If the President signs the act into law, the company will suspend all real money gaming business with U.S. residents, and such suspension will continue indefinitely," it said in a statement.

"Any such suspension would also result in the group's financial performance falling significantly short of consensus forecasts for 2006 and 2007," it added.

Sportingbet warns on gaming ban, scraps merger
Mon Oct 2, 2006 7:29 AM

LONDON, Oct 2 (Reuters) - Online gaming group Sportingbet Plc said on Monday it would scrap a planned merger and might stop doing business with U.S. customers after legislation was passed there aimed at preventing gambling over the Internet.

"Should Sportingbet's non-U.S. international banking partners determine that the act applied to them, then Sportingbet would no longer be able to take deposits from U.S. residents and this would have a material impact on the company's trading performance," it said in a statement.

"The boards of Sportingbet Plc and World Gaming Plc have discontinued any discussions with regard to a potential offer by Sportingbet for World Gaming," the two groups added.

SBT down 74% and falling !!!!!!

PRTY down 32% and falling !!!!!!

888 down 40% and falling !!!!!!

Don't catch a falling knife. Ditch those shares while you can.

How amazingly insightful Fundamentalist's post of June 2005 proved to be which I reproduce below - it could have been written today if we didn't know better:

"moneyplus

my thoughts fwiw

there may be some short term upside but to me for the longer term the risks far outweigh the potential reward

I am someone who plays poker online regularly and can see why party is a popular site. However, there is large potential downside in the future based on US govt policy as to whether online gambling is legal - currently it is deemed to be illegal but not policed. Party receive 87% of their revenues from US citizens - if this avenue of revenue and profit is lost then the company will be but a shadow of its current self. To me there are two possible ways this can go long term:

1) The US govt crackdown on their citizens gambling on-line - they have already started by putting pressure on the likes of paypal who do not allow money tfrs to gambling sites. They are also rumoured to be starting to put the pressure onto the banks and credit card companies.

2) The US govt decide to legalise online gambling. If this were to happen then the competition to party will increase overnight with several very big players, especially the casinos who would be likely to bring out their own sites. They would have the ability to link the games to real live games in the casino and offer "comps" to the online players like they do the "live" players. If this were to happen then party could well get squeezed out of the market completely. Ultimately the barriers to entry for competitors are low - the value is the brand name and its customers -the software can effectively be bought off the shelf now.

Based on this, party will only be successful while the US govt continue to dither in either enforcing or changing their policy in this area. Until then, they are likely to generate substantial amounts of cash.


My other concern is to why they have floated - the cash was not needed to help grow the business, it is just to enable the founders to take some money out of the business - would they be doing this if they thought the companys prospects were going to get better?

Long term i think this is a share i would be happy to short but am currently on the sidelines until the price has settled down and found a trading range - i wouldnt be surprised to see it rise over the coming weeks but personally dont see it being a ftse100 company in a few years time.

Fundamentalist.

janetbennison....hope your ok....guaranteed stop loss??