In an interview with “Bloomberg News”, PartyGaming’s chief executive officer, Mitch Garber, discussed the latest anti-online gambling measure in the U.S., which effectively throws up a financial barrier around the US to prevent Americans from gambling over the Internet.

The online gambling measure, referred to as the Unlawful Internet Gambling Enforcement Act, essentially represents a funding ban on online gambling. As it was attached to unrelated legislation concerning U.S. port security, the bill passed easily without any opposition.

In the interview, Mr. Garber told Bloomberg News: "This development is a significant setback for our company, our shareholders, our players and our industry," he said. "While US horse-race betting, state lotteries, fantasy contests and certain other online gaming activities have been exclusively protected under the new law, we are disappointed that the popularity and skill of poker in particular have not also been specifically protected.”

PartyGaming was not the only online gaming company to express disappointment over the measure. Empire Online said that it has already begun considering the possible impact the legislation may have on its current business activities: “Presently it is difficult to assess the exact effect of this legislation, which could have a material impact on future earnings”.

PokerStars, a major Israeli-owned online poker company said the legislation has prompted the company to consider suspending its activities in the United States, although the decision to suspend has not yet been finalized.

In a statement made late Sunday night to Gambling911.com, Calvin Ayre, CEO of Bodog.com, also commented on the developments: “Bodog is a broad based digital entertainment company that has long ago ceased to be dependent on any one revenue channel. Bodog will continue to monitor things as they unfold but is not expected to make any changes until our study is completed."

Posted on: October 12, 2006

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