There is a fresh law waiting to be signed by President Bush which was 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 finish off all online gambling sites by rendering it illegal for any bank, charge card company or online payment system to process any payments being made to online gambling companies.
The brand new law states that Online Gambling sites are actually banned from accepting any type of check, charge card or electronic transfer payments for internet gaming in the US and seriously puts the 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 would cease their ties with the 920,000 active US customers they currently have only once Bush actually signs the brand new act.
Although the brand new law hasn’t yet been signed, the 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 their shares. 888 Holding, like, had a 48% decrease on their shares dropping them down to $1.42 on the British Market and announced that it would no more continue its online gambling business in the United States.
This isn’t the very first Act, however, that has given the government capacity to break up the internet gambling industry. Underneath the 1961 Wire Act, the government has the best to brake down online betting in sports, poker and other casino games that are regarded as illegal beneath the law.
This really is seriously debilitating the industries economy since 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 power down 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 is going to be facing extinction and will in all probability be wiped out of the industry all together. The small number of firms that manage to live through this incredible crisis must deal with an enormous cut back on their revenue and determine new methods for growing again. The thought of setting up in the Asian market has changed into a favored idea for many.