Online Gambling Shares Soar Despite US Congress Bill

LONDON -- As reported by the Irish Examiner: "Online casinos surged in value today despite backing in the United States last night for strict laws to ban internet gambling.

"The US House
  of Representatives voted overwhelmingly in favour of a Bill to outlaw internet gambling and the use of credit cards to settle online bets.

"It was feared that such a move could hit online gaming stocks such as PartyGaming because the industry relies so heavily on the US for its revenues.

"But shares in the PartyPoker giant – the world’s biggest online poker company - lifted more than 5% today as investors in London gambled on a less enthusiastic response to the Bill when it reaches the Senate.

"Smaller operators also benefited, with shares in Sportingbet up 4% and Empire Online 1% higher, although 888 Holdings fell half a penny.

"ABN Amro analyst Michael Pacitti said support for online gaming stocks came amid doubts that the Bill will get through the Senate.

"'Congress yesterday approved the Bill to prohibit online gaming,' he said. 'This was expected. The Bill must now go to the Senate where we believe there will be greater opposition to the Bill.'

"The Internet Gambling Prohibition Act is sponsored by Republicans Bob Goodlatte, of Virginia, and Jim Leach, of Iowa, who managed to get similar Bills through Congress in 2002 and 2003 but failed to win the support of the Senate."