Israel reports online gambling market downsizing has begun

Israel reported this week that it's feeling the effects of the United States' online gambling ban legislation as the local industry has started downsizing to adjust to the change. IM Intermedia, which supplies services for online marketing and data mining for online gaming companies in the United States, dismissed half of its 100 workers in the country this week.

IM Intermedia's customers include the Intercontinental Online Gaming Group, which owns Fair Poker.

It was expected that the small- and medium-sized firms such as IM Intermedia that supply services to gambling sites would be the first to be effected as the industry changes because of the online gambling ban. IM Intermedia is probably just the first of many that will make cuts and changes in the following weeks.

Since a law was passed by the U.S. Congress that would make it illegal for U.S. banks and other financial institutions such as credit card companies to pass on funds to Internet gambling sites, stock prices of various major online gambling companies have dropped significantly and cost the industry billions of dollars.

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