Internet gambling stocks plunge on ban being adopted in the US
This law is a real disappointment. My guess is that many casinos and other gambling businesses helped push for this ban.
Billions of pounds were wiped off the value of online gaming stocks today after a controversial move to prevent internet gambling in the United States.
Shares in the sector tumbled by as much as 80% as investors reacted with dismay to new laws in the US which ban banks and credit card companies from processing payments to online casinos.
The legislation was a major blow for firms such as Party Poker owner PartyGaming and 888 Holdings, which rely heavily on the US for business.
The two companies said today that they will suspend business in the US indefinitely once President George Bush signs the Bill into law - a move expected within two weeks.
Shares in PartyGaming tumbled 61% while 888 was down 45% and Sportingbet was off 70%. World Gaming plummeted 80% after it was also hit by the end of takeover talks with Sportingbet, and online money transfer company Neteller fell 60%.
Shares in the sector tumbled by as much as 80% as investors reacted with dismay to new laws in the US which ban banks and credit card companies from processing payments to online casinos.
The legislation was a major blow for firms such as Party Poker owner PartyGaming and 888 Holdings, which rely heavily on the US for business.
The two companies said today that they will suspend business in the US indefinitely once President George Bush signs the Bill into law - a move expected within two weeks.
Shares in PartyGaming tumbled 61% while 888 was down 45% and Sportingbet was off 70%. World Gaming plummeted 80% after it was also hit by the end of takeover talks with Sportingbet, and online money transfer company Neteller fell 60%.
posted by John Lott at 3:01 PM
2 Comments:
This law is horrific, and I hope it gets the living snot kicked out of it and struck down as viciously unconstitutional. (Is there a list of the guilty congressmen that voted for this crap? They need to be fired!)
I wonder if, in the meantime, an opportunity exists for 'shell' payment processors (aggregators) that could inject themselves into the payment processing stream between the banks/card companies and the online casinos?
Those of you who comment about Illinois and say we deserve the government we elect should consider that this socialist trend is widespread.
Proves the point that our freedom is more dependent on judges than you might grasp.
Democrats and republicans are freedom bashers too.
'madxluzi' is today's word verification...is this random or is someone fooling around with something that isn't funny?
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