Several leading I-gaming companies today released official statements regarding the status of their operations after prohibitive Internet gambling legislation passed quietly through the U.S. Senate over the weekend.
After losing 56 percent of its share value on Monday, online gambling company PartyGaming announced today it will scrap its interim dividend, due to be paid out Oct. 31.
"Cancellation of the interim dividend will allow the company to take advantage of the many attractive opportunities in the sector that will emerge over the coming months," the company said.
PartyGaming shares fell 4.75p (9.44 percent) to close at 40.75.
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Online gaming group 888, after suspending business from American customers yesterday, announced today that it will nonetheless investigate new opportunities in the United States. The company will shift its focus to games not covered by the pending ban on Internet gambling, chief operating officer Gigi Levy said today.
"Our core capability . . . is bringing people to the Web site, selling them the products and giving them the best customer service," Levy said. "We'll take those capabilities to other products and we see fantasy sports as a possibility," he added.
888 shares dropped 3p (2.77 percent), closing at 105.25.
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U.K.-based Sportingbet announced today that it will continue to receive counsel regarding the scope of the U.S. legislation before taking any specific action.
"Once these determinations have been completed, the board will make a further announcement and intends to comply with all international law that is advised prevails in this matter," the company said.
Sportingbet shares fell 5p (7.58 percent) to close at 61.
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In an announcement to the London Stock Exchange, online gaming software provider World Gaming warned it may be in default on its debt facilities following the U.S. clampdown on Internet gambling.
"Having reviewed the company's debt facilities agreement . . . the Directors believe it may be in technical default of its loan conditions due to a material adverse change in the circumstances of the business arising from changes in the legislation in the U.S.," the company said. A World Gaming spokesperson stressed the company only thought they may be in breach.
World gaming shares dropped 2.75p (18.03 percent), closing at 12.50.
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Software provider CryptoLogic announced that, effective today, licensees of its subsidiary WagerLogic Ltd will no longer accept wagers from U.S.-based players.
"(CryptoLogic) has spent five years preparing for this eventuality by shifting its revenue base to fast-growing European markets," the company said.
CryptoLogic shares fell 65p (6.79 percent) to 892.50.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.