There’s a brand new law waiting to be signed by President Bush that has been presented to Congress that is holding the $12 billion online gambling industry by a thread. It appears 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 likely to be signed by President Bush, will practically end all online gambling sites by rendering it illegal for just about any bank, credit card company or online payment system to process any payments being built to online gambling companies.
The new law states that Online Gambling sites are now banned from accepting any type of check, credit card or electronic transfer payments for internet gaming in the US and seriously puts a in chaos.
Surprised at the passing of this new debilitating law, the leaders in the online gambling industry took drastic measures and started 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 stated that they would cease their ties with the 920,000 active US customers they actually have only once Bush actually signs the new act.
Although the new law hasn’t yet been signed, a has already been being drastically affected. PartyGaming’s stocks alone have dropped 60% finding yourself 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 lot of money on their shares. 888 Holding, for instance, had a 48% decrease on their shares dropping them down seriously to $1.42 on the British Market and announced that it would definitely no more continue its online gambling business in the United States.
This isn’t the very first Act, however, that’s given the us government capacity to break up the online gambling industry. Beneath the 1961 Wire Act, the us government has the proper to brake down online betting in sports, poker and other casino games which are regarded as illegal under the law.
That is seriously debilitating the industries economy since the US consumer market is accountable for 50-60% of the online gambling revenue. These critical laws against the online gambling site owners are forcing companies to power down or transfer 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 caught 2,300 online gambling sites around the world is likely to be facing extinction and will in all probability be wiped from the industry all together. The few firms that manage to live through this incredible crisis will have to deal with an enormous scale back on their revenue and figure out new ways of growing again. The thought of setting up in the Asian market has become a favored idea for many.