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U.S. Congress has finally made the steps necessary to make life incredibly hard for Online gambling firms. A late night session on Friday 29th September saw the "Unlawful Internet Gambling Act of 2006" attached to a Port security bill and then passed, meaning the $6.5 Billion industry will take a hit from US-based incomes. The legislation means that it is illegal for banks or credit-card companies to make any payments toward Online Gambling sites.
The law will come into affect if and when President George W. Bush signs the bill.
Julian Easthope, analyst at UBS said; ""We believe that this will have a very material impact on the long-term prospects of online gambling, and in particular poker…This will lead to a rapid decline in the use of online poker sites."
U.S. Players account for a large portion of Online gaming revenue, but most firms are located in offshore areas just as Costa Rica or Antigua to ensure they are free of U.S. prosecution.
Shares in publicly traded gaming companies have dropped since congress passed the controversial legislation, but investors remain hopeful that the changes will not transcend to an outright ban on gaming and betting online.
The online gaming community is currently in an outrage regarding the manner in which this bill had been passed and the refusal by congress to consider regulation and taxation, as opposed to prohibition. There is likely to be a great deal of resistance against making the law a reality.
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