Ultimate Bet, PokerStars say bill does not apply to online poker
After taking legal advice, PokerStars has concluded that the Unlawful Internet Gambling Enforcement Act does not apply to online poker, according to the Independent.

Flying in the face of the opinion of American legislators and the wider internet gaming industry, the company asserts that poker is a game of skill, not chance, and therefore not covered by the new law.

PokerStars executives were very close to pulling out of the US market early last week according to various sources.

A major of concern for PokerStars was its heavy reliance on the Royal Bank of Scotland, which announced Thursday it would comply with the recently passed legislation.

It emerged yesterday that RBS and Barclays are contacting clients to evaluate the extent of their involvement in online gaming in the US. Barclays, too, declined to comment but is understood to have already written to major clients. Others will be contacted within the week.

Meanwhile, Ultimate Bet sent out a message to its players Thursday which read:

"UltimateBet continues to be available for play by all members of the online community worldwide, including US players. The new US legislation, expected to be signed on Friday, October 13, does not prohibit the online community playing online poker. At UltimateBet, its business as usual. All players deposits are held safely in a segregated account at a Tier 1 legal institution."

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Christopher Costigan, www.gambling911.com

Originally published October 13, 2006 12:34 am

0540 GMT [Dow Jones] UBS cuts Partygaming (PRTY.LN) target to 26p from 75p following the implementation of the Port Security Bill on Friday. Says Partygaming's subsequent closure of its pay websites to US customers will have a very material impact on profitability. Notes Partygaming generated 77% of 1H income from US customers, and believes the company is likely to lose its market leading position. "We remain concerned by the long term prospects," it says. Reiterates reduce rating. Shares closed at 34.5p.