There is a new law waiting to be signed by President Bush which was presented to Congress that’s holding the $12 billion online gambling industry with 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, bank 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 almost any check, bank 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 web gambling industry took drastic measures and began to trade off stock on the London Stock Exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online gambling site stated that they’d cease their ties with the 920,000 active US customers they already have only if Bush actually signs the newest act.
Although the newest law hasn’t yet been signed, a is already being drastically affected. PartyGaming’s stocks alone have dropped 60% finding yourself at a measly .81 cents a share result macau 4d. Other sites like SportingBet and 888 Holding were also affected by the change and have since lost a lot of money on the shares. 888 Holding, like, had a 48% decrease on the shares dropping them down seriously to $1.42 on the British Market and announced so it would no longer continue its online gambling business in the United States.
This isn’t the initial Act, however, that’s given the government power to break down the web gambling industry. Beneath the 1961 Wire Act, the government has the right to brake down online betting in sports, poker and other casino games which are regarded as being illegal under the law. This really is seriously debilitating the industries economy since the US consumer market is responsible for 50-60% of the web gambling revenue. These critical laws against the web gambling site owners are forcing companies to power down or re-locate but what’s clear is they are no longer 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 undoubtedly be facing extinction and will most likely be wiped out of the industry all together. The few companies that manage to reside through this incredible crisis must live with a huge cut back on their revenue and find out new ways of growing again. The notion of opening up in the Asian market has turned into a favored idea for many.