There’s a brand new law waiting to be signed by President Bush that was presented to Congress that is 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 is anticipated to be signed by President Bush, will practically complete all online gambling sites by making it illegal for almost any bank, credit 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 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 with this new debilitating law, the leaders in the online gambling industry took drastic measures and began 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 newest act.
Although the newest 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 affected by the change and have since lost a lot of money on their shares. 888 Holding, as an example, had a 48% decrease on their shares dropping them down seriously to $1.42 on the British Market and announced that it was going to no further continue its online gambling business in the United States.
This isn’t the initial Act, however, that’s given the us government power to breakdown the online gambling industry. Under the 1961 Wire Act, the us government has the best to brake down online betting in sports, poker and other casino games which can be regarded as illegal beneath the law.
That is seriously debilitating the industries economy because the US consumer market is responsible for 50-60% of the online gambling revenue. These critical laws against the online gambling site owners are forcing companies to shut down or transfer but what’s clear is they are no further 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 globe will undoubtedly be facing extinction and will likely be wiped from the industry all together. The few firms that manage to call home through this incredible crisis must live with a massive reduce their revenue and determine new ways of growing again. The idea of checking in the Asian market has become a favored idea for many.