Shares in some online gaming firms soared yesterday as the future of a ban on internet gambling in the US appeared to fade.
Past efforts to ban internet gambling have never been realized.
Three bills introduced recently to try and curb internet gambling would have seen major problems for many online gaming companies that see the US as their biggest market.
However, the Internet Gambling Prohibition Act, proposed by Republican senator Bob Goodlatte came under attack from law-makers at a meeting of a subcommittee of the House of Representatives. Some Congressmen were concerned that the bill clamped down on some forms of betting while allowing others to continue.
No date has been set for a further hearing for the bill and sector watchers say the odds of it making it onto the statute book have lengthened.
“For the last month, people have taken a dim view of US legislation, so today’s news is welcome relief,” said Charles Wilson, analyst at Bridgewell Securities. “Without the threat of legislation, online gambling shares are significantly undervalued.”
“There’s still the Kyl bill to come,” he added, “but some of the risk has now been taken out.”