Cryptologic would benefit considerably if US players could play on poker sites. CRYP makes the software that fuels many of the online poker sites out there. CRYP has an excellent balance sheet to handle any slowdown with $126mm cash in the bank and no debt. With a market cap of $410mm, that leaves it with an enterprise value of just $283mm. The company had cash flows of $40mm over the past 12 months, giving it a multiple of enterprise value over cash flows of just 7, making it an excellent takeover target at these levels if one thinks the legislation will be repealed. Even without a repeal, analysts from ThinkEquity expect the company to earn $1.30 per share on revenues of $90mm in 2007, down from their earlier estimate of $125mm revenues and $2.08 a share. A harsh blow but not a knockout punch as many had initially expected.

The stock took almost a 50% hit when the online gambling law took affect. Their Firepay subsidiary runs online poker rooms and 80% of its revenues came from US customers. OPMR has the most to gain from any repeal of the law. That said, OPMR is a good investment at these levels with or without online poker. They also run a credit card processing division which processes cards from online merchants. This division will account for over 75% of revenues this year as opposed to just 50% last year. Meanwhile, the company has an excellent balance sheet with $5.63 a share in cash (almost $170mm in net cash). Leaving it with an enterprise value of just $41mm. Analysts are still expecting earnings of 69 cents a share in 2007, giving it a forward EV/ EBITDA multiple of less than five, making it an excellent buyout target even without any laws being repealed.

- 43% of GIGM's revs came from their poker portal. however, the asian based company is not as affected by the lack of US customers. - forward P/e of 18 - 300% year over year earnings growth last year

- World Poker Tour - planning various online sites for poker should the law get repealed

- owns a majority of WPTE