There’s a brand new 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 likely to be signed by President Bush, will practically finish off all online gambling sites by making it illegal for any bank, bank card company or online payment system to process any payments being made to online gambling companies.
The newest law states that Online Gambling sites are now actually banned from accepting any type of check, bank card or electronic transfer payments for internet gaming in the US and seriously puts the industry in chaos.
Surprised at the passing of 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 already have only once Bush actually signs the newest act.
Although the newest law hasn’t yet been signed, the industry 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, like, 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 more continue its online gambling business in the United States.
This isn’t the very first Act, however, that has given the federal government power to break down the internet gambling industry. Beneath the 1961 Wire Act, the federal government has the proper to brake down online betting in sports, poker and other casino games which can be regarded as illegal underneath the law.
This is seriously debilitating the industries economy since the US consumer market is accountable for 50-60% of the internet gambling revenue. These critical laws against the internet gambling site owners are forcing companies to shut down or re-locate 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 playing around 2,300 online gambling sites around the globe is going to be facing extinction and will in all probability be wiped from the industry all together. The few companies that manage to live through this incredible crisis will need to deal with a massive scale back on their revenue and find out new ways of growing again. The notion of setting up in the Asian market has changed into a favored idea for many.