Top online gambling companies said Monday they were preparing to suspend their U.S. operations after Congress approved a bill aimed at cutting off cash flowing to their Internet sites. The Unlawful Internet Gambling Enforcement Act, abruptly passed Saturday as part of a port securities bill, bans banks and credit card companies from accepting checks and electronic payments from customers using Internet gambling sites.
"I've always considered Internet gaming to be a threat to the bricks and mortar industry," said Britt Singletary, a Biloxi lawyer and member of the International Masters of Gaming Law. "We want people to actually come and enjoy the casino experience. If they can stay home, they will tend to do that. It does hurt our industry."
The congressional action sent online gambling companies' stocks into a tailspin. Shares of PartyGaming PLC, which operates the world's most popular poker site, PartyPoker, fell 58 percent on Monday, and those of Sportingbet, which owns ParadisePoker.com, fell 64 percent. Over all, the plunge wiped up to $7.5 billion in value off the books.
PartyGaming said in a statement that the legislation, if enacted will make it practically impossible to provide U.S. residents with access to its online gaming sites. If the president signs the act into law, the company will suspend all real money gaming business with U.S. residents.