There is a new law waiting to be signed by President Bush that has been presented to Congress that’s holding the $12 billion online gambling industry by 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’s anticipated to be signed by President Bush, will practically finish off all online gambling sites by making it illegal for almost any bank, charge card company or online payment system to process any payments being designed to online gambling companies.
The brand new law states that Online Gambling sites are actually banned from accepting any kind of check, charge card or electronic transfer payments for internet gaming in the US and seriously puts the industry in chaos.
Surprised at the passing of this new debilitating law, the leaders in the web 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 said that they’d cease their ties with the 920,000 active US customers they actually have only if Bush actually signs the brand new act.
Although the brand new law hasn’t yet been signed, the industry is being drastically affected. PartyGaming’s stocks alone have dropped 60% winding 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 lot of money on the shares. 888 Holding, as an example, had a 48% decrease on the shares dropping them right down 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 has given the us government capacity to break up the web gambling industry. Beneath the 1961 Wire Act, the us government has the right to brake down online betting in sports, poker and other casino games which can be considered to be illegal under the law.
This is seriously debilitating the industries economy as the US consumer market is in charge of 50-60% of the web gambling revenue. These critical laws against the web gambling site owners are forcing companies to turn off or re-locate 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 running around 2,300 online gambling sites all over the world will be facing extinction and will likely be wiped out from the industry all together. The small number of firms that manage to live through this incredible crisis will have to deal with an enormous reduce their revenue and find out new methods for growing again. The notion of setting up in the Asian market has become a favored idea for many.