Online gaming is big industry in the United States and other western countries, accounting for over $6.5 billion annually. These profits are now coming under fire after the U.S. Congress passed a bill late last night that would prohibit online gambling in the United States - the world's largest consumer of online gambling. This caused shares of several online gambling related stocks in the UK to fall sharply in today's trading, including 888 Plc (down 45%), Neteller Plc (down 62%), PartyGaming (down 60%), World Gaming (down 70%), and SportingBet (down 60%). Some companies such as 888 Plc stated that they would exit the U.S. market, while others like SportingBet said they would continue to advertise to U.S. consumers despite the law.

At least one U.S. holding company that provide payment processing solutions were also affected by the ruling. Optimal Group Inc. (NDAQ:OPMR) filed an 8K press release today stating:

"Optimal Group holds approximately 76% of the issued and outstanding shares of FireOne Group plc (London Stock Exchange (AIM): FPA). FireOne Group is a provider of payment processing services for the online gaming industry. The enactment of the Unlawful Internet Gambling Enforcement Act of 2006 will have a significant negative impact on the business and results of operations of FireOne Group, and therefore the Company."

*Note: FireOne Group is a publicly traded company in the UK that is currently trading down 65%.

Although the law would not specifically target these online payment solutions, they will still suffer as a result of lost business. Whether or not the United States will be able to effectively enforce the law remains to be seen. If they cannot find a way to effectively do so, or the law ends up being repealed, international investors may be able to pay pennies on the dollar for shares of these online gaming companies.