Want to stay current on e–commerce law? Sign up for Email Newsletter.
American Gambling Legislation Punts U.K Firms
Legislation recently signed into law by President Bush has now legally restricted the ability of banks and credit card companies to settle payments to and by on-line gambling firms. The Unlawful Intent Gambling Enforcement Act has proved to be an elegant method to force the dissolution of the extensive online gambling market in the United States.
The effect of this new law has been that Sportingbet PLC and Leisure and Gaming PLC have each sold their American operations for a token $1. Sportingbet sold its operations to an Antigua based company, which has assumed a $13.2 million dollar debt associated with the purchased operations. Sportingbet has retained some of the intellectual property associated with its U.S. operations. It is unclear how the purchased assets will be used in light of the recent legislation; however, reception to news of the sale appears to have been lukewarm from the shareholders’ perspective. Sportingbet’s stock price plummeted with the arrest of its chairman in September during a visit to the United States, and recent news has not resulted in any significant price recovery.
For additional information, visit:
http://www.siliconvalley.com/mld/siliconvalley/news/editorial/15751819.htm