There’s a fresh law waiting to be signed by President Bush which was presented to Congress that is holding the $12 billion online gambling industry with a thread. It seems that Tennessee Senator Bill Frist, introduced the bill on Saturday by joining it to the Safe Port Act before Congress took its election recess in November.
The Unlawful Internet Gambling Enforcement Act that is expected to be signed by President Bush, will practically complete all online gambling sites by which makes it illegal for any bank, charge card company or online payment system to process any payments being designed to online gambling companies.
The new law states that Online Gambling sites are now banned from accepting any kind of check, charge card or electronic transfer payments for internet gaming in the US and seriously puts a in chaos.
Surprised at the passing with this new debilitating law, the leaders in the internet gambling industry took drastic measures and started initially to trade off stock on the London Stock Exchange which erased $8 billion from the industry. PartyGaming, lagalaxy the world’s biggest online gambling site said that they’d cease their ties with the 920,000 active US customers they actually have only when Bush actually signs the brand new act.
Although the brand new law hasn’t yet been signed, a is being drastically affected. PartyGaming’s stocks alone have dropped 60% ending up at a measly .81 cents a share. Other sites like SportingBet and 888 Holding were also suffering from the change and have since lost a bundle on their shares. 888 Holding, as an example, had a 48% decrease on their shares dropping them right down to $1.42 on the British Market and announced that it was going to no more continue its online gambling business in the United States.
This isn’t the initial Act, however, that’s given the federal government power to break up the internet gambling industry. Under the 1961 Wire Act, the federal government has the best to brake down online betting in sports, poker and other casino games that are regarded as being illegal under the law.
This really is seriously debilitating the industries economy because the US consumer market is responsible for 50-60% of the internet gambling revenue. These critical laws against the internet gambling site owners are forcing companies to turn off or move out but what’s clear is they are no more welcome in the United States.
The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies playing around 2,300 online gambling sites all over the world will soon be facing extinction and will in all probability be wiped out of the industry all together. The few companies that manage to reside through this incredible crisis must live with a huge scale back on their revenue and figure out new methods for growing again. The idea of checking in the Asian market has turned into a favored idea for many.