Firepay says US law will have a significant negative impact

The online e-cash processor Firepay issued the following statement on being asked for its position on the new financial restrictions envisaged by American legislators against online gambling in the Unlawful Internet Gambling Enforcement Act of 2006.

The company responded:

"The Act, upon becoming law, will prohibit gambling businesses from accepting any financial instrument in connection with unlawful Internet gambling. It will become law upon its approval by the President of the United States, which the company expects will occur in the immediate near term.

"The Act does not define "unlawful Internet gambling" nor does it make unlawful any activities by financial institutions that are not themselves gambling businesses. It further directs the United States Federal Reserve and the Department of the Treasury to develop regulations that would direct financial institutions to identify and block certain types of financial transactions connected with unlawful Internet gambling.

"The enactment of the Act will have a significant negative impact on the business and results of operations of the company, and the Board is evaluating the situation and will provide an update when appropriate."