|Shares in one of the largest gaming software providers, CryptoLogic, fell 8.8% yesterday. The drop was attributed to speculation that new legislation is set to ban Internet gambling in the U.S, according to Thomson Kernaghan analyst Rob Klein.|
The success of Rep Jim Leach, R-Iowa’s anti-gaming bill, which was passed yesterday and the lawsuit against CryptoLogic from New Jersey regarding their flagship site Intercasino.com is causing selling pressure to the stock.
The company could also be anticipating a poor review from the Fifth Estate, the television newsmagazine which airs a segment on CryptoLogic tomorrow.
“We haven’t seen the segment,” said Klein. “But, according to CryptoLogic management, the report will be negative in tone.”