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World Gaming says it may have breached loan agreements

World Gaming says it may have breached loan agreements

World Gaming PLC, which had been in talks with Sportingbet PLC about being taken over, said Tuesday it may be in technical default of its loan conditions after the U.S. Congress passed laws to close down Internet gambling in the United States.
The Britain-based company "may be in technical default of its loan conditions due to a material adverse change in the circumstances of the business," World Gaming said in a statement, citing the legislative changes in the U.S. The company did not provide any further details.
Shares in British online gambling companies, including PartyGaming PLC and Sportingbet, dived Monday after Congress passed legislation prohibiting the use of U.S. credit cards, checks and electronic fund transfers for online gaming.
Sportingbet said Monday that because of the legislation it would not pursue the proposed acquisition of World Gaming.
World Gaming shares dropped 8.9 percent to 41 pence (USD$0.77; euro0.61).