Online gambling

The new law banning internet gambling in America created fresh waves as PartyGaming cancelled its dividend and the AIM-listed World Gaming said that it was in discussions with its banks.

PartyGaming, the world’s biggest internet gambling firm, said that it had decided to cancel the interim dividend of three cents a share that was due to be paid on October 31 in order to spend the money - a total of $120 million (£64 million) - on acquisitions.

World Gaming, which derives more than 90 per cent of its revenues from American punters through sites such as sportsbetting.com and betonusa.com, said that the “material adverse change” to its business from the new law could put it in “technical default” of its loan agreement.

The group has net debt of $23 million. It said: “The company continues to operate and is in discussions with its lenders.” The American crackdown could not have come at a worse time for World Gaming, which last month announced an all-paper takeover by Sportingbet worth £56.6 million, just hours before it emerged that Peter Dicks, Sportingbet’s chairman, had been arrested in New York. He was released last week.

888 Holdings, a rival, said that it planned to turn its American gaming platform into an entertainment website when the new law takes effect. One area may be fantasy sports, where punters can win cash prizes for selecting successful fantasy sports teams.