Feb. 21 (Bloomberg) -- Shares of U.K. Internet gambling companies PartyGaming Plc and Sportingbet Plc rose on speculation that laws restricting online wagers in the U.S. may be relaxed.
``There's speculation of a lifting of the ban passed by the U.S. Congress which would be good news for companies like PartyGaming,'' said Kevin Lyne-Smith, an investment consultant at Julius Baer Holding AG's private banking division in Switzerland, which manages the equivalent of $100 billion.
PartyGaming and Sportingbet were among Web gambling operators that stopped taking bets from the U.S. after Congress unexpectedly passed legislation in September that criminalized processing of credit-card payments for the industry. U.S. gamblers accounted for about 85 percent of PartyGaming's revenue in 2005.
``A relaxation in the law is seen as a possibility with talk that it is proving too onerous for banks to track illegal payments,'' said Martin Slaney, head of spread betting at GFT Global Markets in London.
Shares of Gibraltar-based PartyGaming jumped 4.25 pence, or 11 percent, to 41.5 pence in London today. The stock fell 76 percent in 2006 after the U.S. law was passed. Sportingbet shares climbed 5 pence, or 14 percent, to 40 pence, the biggest gain since Oct. 24. They slid 87 percent in 2006.
PartyGaming is scheduled to report 2006 earnings on March 1. Neither company immediately returned calls from Bloomberg News.
``There's speculation of a lifting of the ban passed by the U.S. Congress which would be good news for companies like PartyGaming,'' said Kevin Lyne-Smith, an investment consultant at Julius Baer Holding AG's private banking division in Switzerland, which manages the equivalent of $100 billion.
PartyGaming and Sportingbet were among Web gambling operators that stopped taking bets from the U.S. after Congress unexpectedly passed legislation in September that criminalized processing of credit-card payments for the industry. U.S. gamblers accounted for about 85 percent of PartyGaming's revenue in 2005.
``A relaxation in the law is seen as a possibility with talk that it is proving too onerous for banks to track illegal payments,'' said Martin Slaney, head of spread betting at GFT Global Markets in London.
Shares of Gibraltar-based PartyGaming jumped 4.25 pence, or 11 percent, to 41.5 pence in London today. The stock fell 76 percent in 2006 after the U.S. law was passed. Sportingbet shares climbed 5 pence, or 14 percent, to 40 pence, the biggest gain since Oct. 24. They slid 87 percent in 2006.
PartyGaming is scheduled to report 2006 earnings on March 1. Neither company immediately returned calls from Bloomberg News.
