It has already been discussed that in September 2006 the US passed a law to shut down online gambling. As a result, the shares of many online gambling companies, including many the British Virgin Islands-based companies fell significantly. However, there are signs that the US Congress may reconsider its 2006 online gambling ban, which European operators perceive as a hope to re-enter the US market.
After the signing of the a bill banning Internet gambling payments by President Bush, five European public online gambling companies, which were very successful and in 2005 took in about $1.4 billion from the US, had their share prices tank and profits collapsed.
One of the five above-mentioned companies, BVI-based Empire Online had to entirely give up its online gambling activities and found its way out in becoming an investment company.
As to others, 888 Holdings, Sportingbet.com and PartyGaming, which bought poker customers of Empire Online’s, turned their focus to Western European gamblers, however, their share prices have not recovered; while London-based BetOnSports.com had its shares suspended, its Chief Executive Officer was arrested and pleaded guilty to federal racketeering charges in the USA.
Currently, some analysts believe that the United States may rethink and change its standpoint regarding online gambling, which would allow European companies to do business again in the US market. On June 8, 2007, the House Financial Services Committee held a hearing aimed at considering a bill to allow banks and credit-card companies to legally process payments for online gambling sites. One of the striking arguments was as follows: the gambling ban forced publicly traded companies like Empire Online to leave the USA, however, the gap was quickly filled by private outfits offering unregulated online gaming services to Americans. Also, numerous offshore gambling services are still targeting US customers, and, since the ban came into force, the total spending on gambling online has decreased by only 20%.