Optimal Plunges on Gambling Law

Optimal Group (OPMR Quote) plunged 31% after the company said the passage of an Internet gambling law would hurt its business.

The Montreal-based company said the enactment of the Unlawful Internet Gambling Enforcement Act of 2006 "will have a significant negative impact on the business and results of operations of FireOne Group, and therefore the company."

FireOne is Optimal's 76%-owned provider of payment processing services for the online gaming industry.

The act directs the 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," Optimal said.

Shares fell $3.68 to $8.08.