PURITANISM NEVER DIES IN AMERICA

Around £4 billion was wiped off the value of online gaming stocks today after a controversial move to prevent internet gambling in the United States.

The legislation was a major blow for firms such as Party Poker owner PartyGaming and 888 Holdings, which rely heavily on the US for business.

The two companies said today that they will suspend business in the US indefinitely once President George Bush signs the Bill into law - a move expected within two weeks.

Shares in PartyGaming tumbled 61 per cent while 888 was down 45 per cent and Sportingbet was off 70 per cent. World Gaming plummeted 80 per cent after it was also hit by the end of takeover talks with Sportingbet, and online money transfer company Neteller fell 60 oer cent.

The Unlawful Internet Gambling Enforcement Act effectively stops anyone in the US from placing bets on the internet even if the casino is based overseas, although it does not include horseracing and state-owned lotteries.

888 said today that the new law would treat internet gaming, "whether sports-related or not, as illegal".

"In the light of these considerations the board has concluded that it is appropriate to suspend participation by US-based customers in activities covered by the legislation," 888 said.

"The company will implement this suspension immediately upon the legislation taking effect and the suspension will continue for so long as the legal situation remains the same.

"The board will continue to seek clarification of the overall US legal position to determine whether and to what extent if any resumption of participation by US customers is feasible."

PartyGaming also said it would halt operations in the US "indefinitely" once the Bill becomes law.

Chief executive Mitch Garber said: "This development is a significant setback for our company, our shareholders, our players and our industry."

It would seem foolhardy to keep any money in an online poker account right now. I feel like an East Berliner not wanting to leave my home, but anticipating the construction of the Berlin Wall.

And they were going to shrink the size of government and get Washington out of our lives.

UPDATE: My InterPoker account was fine yesterday and suspended today.

UPDATE #2 - The Good Guys