As reported by: Reuters
he latest U.S. attempt to ban the multibillion-dollar online gaming industry from its virtual shores will take a step forward this week, but looks set to fall short of its goal, London-based analysts say.

News flow is likely to hit shares in the sector, but will provide short-term buying opportunities, they added.

Rep. Bob Goodlatte of Virginia is the latest U.S. opponent of Internet gambling, which is estimated to generate about $12 billion a year globally through 2,300 sites.

Goodlatte's bill has been merged with that of Rep. Jim Leach of Iowa, and seeks to bar gambling businesses from accepting payment by credit card, cheque, wire or Internet.

It will be heard by the House of Representatives this week, possibly as early as Tuesday, gaming analysts say.

"The Republican leadership has made the bill a priority in its 'American values' agenda, and hence it is likely that the bill will pass," Morgan Stanley analysts said on Tuesday in a research note.

But analysts say it is unlikely to go much further due to a lack of time in the Senate.

The progress of the bill has given gaming investors a rollercoaster ride in recent months, with stocks like PartyGaming and 888 Plc swinging wildly on the news.
Article By: Reuters