The fallout from the US’ move to ban online gambling has continued with the news that shares in World Gaming have been suspended.
In a statement, the company said there was “a fundamental uncertainty over its ability to continue trading”.
It said: “Following the announcement released by the Company on Tuesday 3 October relating to developments in United States legislation, the Directors of World Gaming announce that, following discussions with all of key parties concerned and having taken legal advice, they have requested the trading of the Company’s shares be suspended with immediate effect due to a fundamental uncertainty over its ability to continue trading.”
Earlier this month, World Gaming said it “may be in technical default of its loan conditions due to a material adverse change in the circumstances of the business, arising from proposed changes in legislation in the United States“.
A merger with larger rival Sportingbet was also scrapped after the approval of the new laws, which ban banks and credit card companies from processing internet bet payments.
The company said it would make further announcements in due course.
In separate (if related) news, PartyGaming looks all set to drop out of the coveted FTSE100 after its market value fell by more than half following the introduction of the Republican’s backdoor bill.