Shares in Austrailian Online Gaming Companies Dive After US Legislation

Shares in Australian online gaming companies crashed more than 50% in response to the passage of US legislation banning Internet gambling.
Melbourne-based Betcorp slumped 106.5 cents or 57% to 81.5 on the Australian Stock Exchange while Lasseters Corporation, based in Queensland, was down 3.7 cents or 51.4% at 3.5.
Both companies earn most of their revenues in the United States and are expected to be hit hard by the Unlawful Internet Gambling Enforcement Act, which was unexpectedly rushed through the US Congress on Saturday.

The bill, expected to be signed into law this week, makes it illegal for finance companies to collect credit-card payments from customers using Internet gaming sites.
Betcorp, which two weeks ago insisted the US legislation's impact would be 'minimal', admitted Tuesday its bottom line would be hurt.
'While management will take appropriate action to mitigate its impact, the act is likely to have a material adverse effect on the company and its profitability,' it said in a statement.
Lasseters, which generates 80% of its revenues in the US, did not comment on the US maneuver. In its annual report, issued last month, the company said it was closely monitoring US developments and would adapt its business model to any changes in circumstance.