Shares of online gambling companies like PartyGaming, Sportingbet and 888 Holdings took a tumble when news broke that the Unlawful Internet Gambling Enforcement Act will be passed into law. This has resulted in a loss of almost $8 billion in the market value of online gambling shares and PartyGaming announced that it will cease taking bets from its active US customers once Pres Bush signs the proposed law. Sportingbet has called off its bid for World Gaming as most of its market is US based.

Experts have said that American bettors are responsible for around 60% of online gambling revenues and therefore some of these operators will either be forced to close down or sell their businesses to other operators. Sue Schneider, publisher of Interactive Gaming has said that 50% of online gambling operators will be forced out of business and those that do survive will have to drastically sharpen their performance in other markets.

A large portion of credit card companies are already not allowing customers to pay online gambling sites due to a settlement between New York Attorney General and major credit card issuers some years ago but how the law will be enforced will be up to US Attorney General Alberto Gonzales.

Ken Dreifach an internet lawyer warns that the legislation will likely drive away the larger and more reputable gaming operators leaving customers vulnerable to less scrupulous operators. Of course a stock listing is no guarantee that customers will not be abused. US customers of BetOnSports have been waiting for their money since July.