It seems American legislators are expanding their scope of investigation in a bid to rid the USA of online gambling and British firms are paying the price.

Latest figures show that the share prices for online gambling firms here have fallen by as much as 9 % in some quarters.

The US Department of Justice has consistently held the view that online gambling is illegal and has adopted an iron fist approach to anyone who they deem to be profiting from online activity unlawfully.

The links between the American and British online gambling industry are extensive and many American businessmen are having their activities abroad investigated by the Department.

In a bid to get around the tough new legislation adopted last year many firms are starting up online gambling firms in Britain but this now may also antagonize government officials on the opposite side of the Atlantic.

They are also pursuing founders and senior executives of Internet gambling companies. Recently they arrested the Canadian founders of NETeller, Stephen Lawrence and John Lefebvre and charged them with handling billions of dollars in illegal gambling proceeds. The strategy is that since action is not possible against Internet casinos, which are offshore, the US Department of Justice will focus instead on the casinos American partners, marketing arms and investors.

Its believed part of the hard line policy being adopted by the Department of Justice stateside is to create a climate of intimidation with regard to online gambling.

The Department would be eager that American firms do not relocate to the U.K but rather wind down all operations of an online nature.