There’s a new law waiting to be signed by President Bush that was presented to Congress that’s 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’s anticipated to be signed by President Bush, will practically end all online gambling sites by which makes it illegal for just about 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 type of check, credit card or electronic transfer payments for internet gaming in the US and seriously puts the in chaos.
Surprised at the passing of the new debilitating law, the leaders in the online gambling industry took drastic measures and started 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 now have only if Bush actually signs the newest act.
Although the newest law hasn’t yet been signed, the has already been being drastically affected. PartyGaming’s stocks alone have dropped 60% ending 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 the shares. 888 Holding, for example, had a 48% decrease on the shares dropping them down seriously to $1.42 on the British Market and announced so it would definitely no longer continue its online gambling business in the United States.
This isn’t the initial Act, however, that has given the us government capacity to breakdown the online 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 that are regarded as illegal beneath the law.
This is seriously debilitating the industries economy since 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 power down or move out 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 around the world will soon be facing extinction and will likely be wiped out of the industry all together. The small number of companies that manage to live through this incredible crisis will have to deal with a huge cut back on their revenue and figure out new ways of growing again. The idea of opening up in the Asian market has changed into a favored idea for many.