There’s 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 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’s anticipated to be signed by President Bush, will practically complete 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 designed to online gambling companies.
The newest law states that Online Gambling sites are actually banned from accepting any type of check, credit 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 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 already have only if Bush actually signs the new act.
Although the new law hasn’t yet been signed, the industry 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 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 so it was going to 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. Underneath 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 regarded as being illegal under the law.
This is seriously debilitating the industries economy as 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 move out but what’s clear is that they’re no more welcome in the United States.
The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies walking around 2,300 online gambling sites around the world will soon be facing extinction and will likely be wiped from the industry all together. The few firms that manage to reside through this incredible crisis must deal with a huge scale back on their revenue and find out new means of growing again. The thought of opening in the Asian market has turned into a favored idea for many.