There is a fresh law waiting to be signed by President Bush that was presented to Congress that’s holding the $12 billion online gambling industry with 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’s expected to be signed by President Bush, will practically end all online gambling sites by rendering it illegal for almost any bank, credit card company or online payment system to process any payments being designed to online gambling companies.
The new law states that Online Gambling sites are actually banned from accepting any kind 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 internet 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 said that they would cease their ties with the 920,000 active US customers they now 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% winding up at a measly .81 cents a share. Other sites like SportingBet and 888 Holding were also afflicted with the change and have since lost a lot of money on their shares. 888 Holding, for instance, had a 48% decrease on their shares dropping them down seriously to $1.42 on the British Market and announced that it would definitely no more continue its online gambling business in the United States.
This isn’t the first Act, however, that has given the us government power to breakdown the internet gambling industry. Beneath the 1961 Wire Act, the us government has the proper to brake down online betting in sports, poker and other casino games which can be considered to be illegal underneath the law.
That is seriously debilitating the industries economy since the US consumer market is in charge of 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 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 caught 2,300 online gambling sites all over the world will be facing extinction and will likely be wiped out of the industry all together. The small number of companies that manage to reside through this incredible crisis must live with a massive reduce their revenue and determine new ways of growing again. The idea of opening up in the Asian market has become a favored idea for many.