U.S. law causing turmoil in online gambling industry

"Big public companies have lost billions of dollars in market value and millions of customers as they shut their United States Web sites for sports betting, poker and other games. Those companies are anxiously searching for acquisition partners and new customers. But business is booming at some smaller private companies, which have continued to operate in the United States despite the ban.

"Britain, meanwhile, is trying to drum up international support for regulation of the industry outside the United States. As the first large Western government to explicitly allow businesses to set up shop on its soil, Britain has stood to benefit enormously from taxing Internet gambling companies that moved here.

"...The British government has been sharply critical of the United States law. United States lawmakers said they passed the ban out of concern that the sites would increase gambling addiction and social problems.

"...Many of the largest public online sites, like PartyGaming and Sportingbet, got the majority of their revenue from the United States

"...Despite its intentions, the Internet bill has not eliminated online gambling in the United States, say analysts and players..."