From interactive gaming news:
Larry Walters: The new legislation will likely drive the larger companies out of the U.S. market. The law is poorly drafted and subject to challenge by the industry, but the consensus appears to be to comply and block U.S. financial transactions. That will make room for the smaller, unregulated operators to acquire U.S. players seeking a new home for their betting activities. Internet gambling will not go away, and U.S. players will find a place to bet. The real question remains: What will companies like Neteller do? Will they buckle under the pressure of U.S. authority or rely on their host country’s sovereignty and continue business as usual?
Certainly, U.S. players will find it somewhat more difficult to wager online, in the short term. But as smaller operators flock to the space opened up by the exiting of larger companies, the void will be filled. This is a remarkable change from just a year ago, when consolidation and acquisition were the words of the day, and the smaller operators found it hard to survive in an industry of multi-million dollar behemoths.
A final variable is the potential for judicial review of the legislation. Perhaps one of the industry’s trade groups or a larger company that has ceased offering services to U.S. players may decide to pursue a legal challenge to the legislation. Given the way this law was rushed through passage, it may be vulnerable to a legal challenge. Then it’s anyone’s guess what a court may do.