Britain’s gambling firms who operate over the internet could be seeing a change of luck after lack of profits for four consecutive years. The industry worth billions of pounds suffered a huge setback when the American market which was the biggest consumer of online British gambling firms was illegalized by the US lawmakers in September 2006.

The next Monday morning brought huge losses to the british gambling giants such as PartyGaming, 888 holdings and Sportingbet had a share price reduction of 58%, 26% and 64% respectively causing a cumulative £4bn in losses.

These companies have expanded into other markets across the world but the losses brought about as a result of US law changes is still affecting these companies. The market was estimated at $5.4bn (£3.5bn) overall in the past year and could be expanding to $12bn-$16bn if rigorous expansion projects were undertaken by the companies according to experts.

Companies are beaming with a glimmer of hope after the chairman of the financial committee on the US House of Representatives; Barney Frank relaunched his bid to get Internet Gambling Enforcement Act reversed which made it impossible for financial institutions to transfer money to firms that operate gambling services online.

The senators on the financial services committee of the US House of Representatives voted in favor of the campaign to overturn the online gambling ban. They are seeking ways to legalize and control sections of gambling over the internet.

Gambling companies are thrilled by the campaign led by Frank who doesn’t gamble himself. People are realizing and recognizing the opinion of frank about gambling as opposed to the past when he made headlines for the wrong reasons. Americans are realizing the need to control the online betting market and not ban.

Professor Malcolm Sparrow of Harvard University says even though internet gambling is illegal in the US, many Americans have found other ways such as using foreign online gambling websites. In the end many Americans are gambling online without any income generated by the government through taxes. Another big news to hit the gambling industry was the apparent merger of the UK’s PartyGaming and Bwin, located in Austria that will make it the biggest gambling company over the internet listed on the stock markets. . The new company will be able to take over the US market if and when the laws against online gambling are reversed.

PartyGaming is already trying to repair its relations with the US after agreeing to pay a fine of $105 million over the period of four years.