PokerStars says U.S. gaming ban does not cover poker

Reprinted from yahoo.....

http://news.yahoo.com/s/nm/20061012/wr_nm/leisure_pokerstars_poker_dc_2

PokerStars says U.S. gaming ban does not cover poker
By Pete Harrison Thu Oct 12, 10:48 AM ET

LONDON (Reuters) - PokerStars, the world's second-biggest Internet poker firm, said on Thursday that a looming U.S. ban on online gaming would not apply to poker, as it is a game of skill, and its business would continue as usual.

The gambling industry was left reeling this month after the U.S. Congress unexpectedly approved a bill that would make it illegal for companies to accept Internet wagers or for banks to process payments to online gaming companies.

The bill defines gambling as the act of staking something of value on "a sporting event or a game subject to chance" and is expected to be signed into law by
President George W. Bush on Friday.

"These provisions do not alter the U.S. legal situation with respect to online poker," privately-owned PokerStars said in a statement.

"Our business continues as before, open to players worldwide including the U.S.," it added. "You may play on our site as you did prior to the act."

The stance contrasts with that taken by rival PartyGaming the owner of the biggest online poker site PartyPoker, which last week said the act made it "practically impossible" to provide poker for money to U.S. players.

PokerStars said: "It is important to emphasize that the act does not in any way prohibit you from playing online poker. PokerStars believes that poker is a game of skill."

PokerStars, said by media reports to be owned by the Israeli Scheinberg family, was considering a $3 billion flotation earlier this year, before prosecution of gaming companies in The United States sparked share price falls across the sector.

About $6 billion was wiped off online gaming shares after the arrest of BETonSPORTS former Chief Executive David Carruthers in July on gambling charges, signaling the start of a crackdown.

And a further $7 billion was lost last week after the U.S. Congress approved the anti-gambling legislation early on September 30.

But while many London-listed companies are pulling out of the United States, analysts say most privately-owned companies will be able to continue.

PokerStars is registered in Costa Rica and processes payments through subsidiaries in the Isle of Man and Cyprus.