I don’t have any recommendations for a particular hosting company but I like to host in Canada or the UK. Not because of worries about the US government’s attitude to online gambling (I’m a UK citizen so that isn’t a problem for me) but because the geographical location of your server affects your presence in their search engines.
I want that Google.ca and Yahoo.ca traffic in addition to the regular Google.com traffic, so I host in Canada for sites that work in US dollars. Works for me.