SOURCE: Bloomberg

Online-gambling stocks rose after the Financial Times said House Financial Services Committee Chairman Barney Frank wants to repeal a law passed last year that criminalized the industry.

Shares of Gibraltar-based PartyGaming Plc, the world's biggest Internet poker operator, rose the most since 2005. 888 Holdings Plc and SportingBet Plc also advanced in London.

``I am working on legislation to cut back on this Internet gambling thing,'' the FT cited Frank as saying on its Web site, referring to last year's law. ``I think it's preposterous,'' and the law is one of the ``stupidest'' ever passed, the FT cited him as saying. ``Maybe we can make some money off it,' he added.

Online-gaming stocks plummeted across Europe in October after Congress unexpectedly banned the collection of credit-card payments from gambling Web sites. PartyGaming lost about three- quarters of its revenue as a result of ending U.S. operations, while 888 lost about half its revenue.

``The slightest indicator that operators may get business back in the U.S. is going to get speculators coming in,'' said Andrew French, a sales trader at E*Trade Securities in London.

Stock in Gibraltar-based PartyGaming, the world's biggest Internet poker operator, rose 4.75 pence, or 13 percent, to 42.75 pence, the most since Dec. 8, 2005. Sportingbet, the owner of Paradise Poker, gained 3 pence, or 5.4 percent, to 58.75 pence. 888 added 4.5 pence, or 3.9 percent, to 120.5 pence.

Payment Processing

To crimp the flow of funds to betting sites, Congress passed the bill Sept. 30 to bar credit card companies from processing payments for the industry. Bush signed the measure into law on Oct. 13.

The legislation sought to close the business to people in the U.S., representing half of the world's Internet gaming market. Its backers argued that a past ban on online gaming in the U.S. only succeeded in pushing the business offshore.

Frank, a Democrat from Massachusetts, has also proposed laws requiring companies to let shareholders vote on executives' pay, and said this week he may propose legislation reining in ``inappropriate'' mortgage lending.

Shares of 888 Holdings, the second-largest U.K. Web gambling company, were lifted earlier on revived speculation it may be bought by Ladbrokes Plc, the world's biggest publicly traded bookmaker. 888 spokesman Nick Lambert said the company wouldn't comment on market speculation. Ladbrokes spokesman Ciaran O'Brien declined to comment.