Thursday, May 04, 2006
Enforcement bill of US e-gaming ban moves ahead

On Wednesday, 3 May, the House of Representatives' Judiciary subcommittee on crime approved the bill that would introduce measures to reinforce the exisiting ban on Internet gambling.

The new bill would introduce measures to enforce the exisiting Wire Act, which prohibits any form of remote gambling by using telecommunications networks. The measures include a ban on accepting payment in the form of credit cards, checks, wire and Internet transfers.

In the absence of efficient control of the e-gaming ban, a great number of companies have continued to supply internet gambling through websites established offshore, out of the reach of US Department of Justice. Although the gambling license is mostly required from soft jurisdictions such as Antigua, Vanuatu or Malta, many companies are established in the UK to attract investment capital.

As a result of the progres in the new anti e-gaming bill, shares of the main public listed gaming companies fell strongly. PartyGaming Plc and 888 Holdings went down about 5 percent each on the London Stock Exchange.

Although there seems to be a political majority as well as momentum to pass the bill, the November congressional elections may slow down its adoption.