Online gaming companies were thrown into turmoil last week after US authorities arrested Peter Dicks, the chairman of online gaming site Sportingbet (LSE: SBT). He was arrested for allegedly violating Louisiana State laws relating to gambling by computer. His arrest followed the arrest of BETonSPORTS (LSE: BSS) boss David Carruthers, who faces charges of racketeering and tax evasion in the State of Missouri.
Now, online gaming companies have long been aware that Internet gambling is illegal in America. For instance, PartyGaming (LSE: PRTY) pointed this out in its flotation prospectus. It said its operations may violate state law, and that violation of these laws can serve as a predicate offence for liability under federal statutes….
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