George,
I was in the web site hosting business for 7 years, all US based companies. Usually web hosting companies will not look for a gaming site to scrub from their servers however if they are alerted to that site by the FBI or some other US govt ageancy (usually it is the FBI) they pay attention & will delete those accounts from their servers. A good host will at least keep a backup of your files so that you can grab them & move to another provider.
As far as geo location of the server relative to your target audience, I do not think that matters too much as I was the affiliate & reseller manager for a couple large hosts & we had clients all over the world. If you are concerned with this server geo location problem you can pick up a web hosting account from Canada & still be close to the US audience which is the most lucrative for the gaming industry.
I know of a few Canadian web hosts including LFChosting (a little expensive), Vistapages.com, netfirms.com, superb.net. Also there is a new web host that is starting up called Hostpapa.ca which looks very promising and less expensive.
Your main insurance is to make sure that you always have a copy of your backed up files so that if you are at a host that shuts you down that you can easily move to another host.
I hope this helps.