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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (104611)	7/17/2006 8:20:47 AM
From: Pogeu Mahone	Read Replies (2) \| Respond to of 132070

U.K. online gaming operators plunge on arrest U.S. federal prosecutor detains chief executive switching flights PrintE-mailDisable live quotesRSSDigg itDel.icio.usBy Steve Goldstein, MarketWatch Last Update: 5:30 AM ET Jul 17, 2006 LONDON (MarketWatch) -- Shares of British-based online gaming operators plunged on Monday after BetOnSports said its chief executive was detained while switching flights in the U.S., raising the prospect that American authorities are moving to crack down on overseas Web sites that allow U.S. citizens to bet illegally. BetOnSports (UK:BSS: news, chart, profile) said its CEO, David Carruthers, was detained by federal authorities while switching flights en route to the Costa Rica, where the company has call centers. The board of BetOnSports said it was seeking "clarification" on the move. BetOnSports plunged 20%, and other operators, including FTSE 100 member PartyGaming (UK:PRTY: news, chart, profile) , also dropped sharply. PartyGaming fell 6%, Sportingbet (UK:SBT: news, chart, profile) dropped nearly 11% and 888 Holding (UK:888: news, chart, profile) dropped 6%. The British online sites operate in the U.K., where betting is legal. But up to 90% of their revenue comes from U.S. bettors, where such gambling is illegal. On the BetOnSports site, for example, 90% of bets are on American football, basketball and baseball, three sports hardly played or bet on in the U.K. Last week the U.S. House of Representatives passed a bill that would prohibit banks and credit card companies from processing payments for online bets. It would also prohibit gambling companies from accepting credit card or electronic transfer payments for online gambling. See story from last week. But the prospects for passage of the bill in the U.S. Senate remain uncertain, and President Bush has only given tepid support, saying he backs it but has unspecified "concerns." Steve Goldstein is MarketWatch's London bureau chief.