LONDON (AP):

Leisure & Gaming PLC and FireOneGroup PLC yesterday became the latest companies involved in Internet gambling to withdraw from the United States market in the face of legislation that makes it illegal to gamble online in the U.S.

"It is the view of the board that following enactment of the legislation it will no longer be appropriate for the company to serve U.S.-based customers and that the company should focus solely on its existing United Kingdom and Italian businesses," Leisure & Gaming, which provides online gambling services, said in a statement. The company is now in negotiations about possible sale of the U.S. business.

FireOne, which processes credit card transactions, said it would stop accepting transactions from U.S. customers that are related to online gambling.

New legislation

The U.S. Congress passed legislation earlier this month prohibiting the use of credit cards, cheques and electronic fund transfers for online gaming. It is expected to be signed into law by President George W. Bush.

Last month, Peter Dicks, the former chairman of Sportingbet PLC, was arrested at Kennedy International Airport on September 6 after customs officials discovered that he was wanted by Louisiana state police.

Dicks was the second executive from a British gaming company to be detained in the United States in recent months.

Former BetOnSports PLC Chief Executive Officer David Carruthers was arrested on federal charges in July at a Dallas airport.

Carruthers remains under house arrest in the St. Louis area awaiting trial on federal charges from the U.S. attorney's office in St. Louis based on the 1961 Wire Act.

Dicks has since returned to the U.K. after New York Governor George Pataki declined to sign a warrant extraditing him to Louisiana, where he is charged with illegal online gambling.