There is 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 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 new law states that Online Gambling sites are actually banned from accepting any kind of check, bank card or electronic transfer payments for internet gaming in the US and seriously puts a in chaos.
Surprised at the passing of the new debilitating law, the leaders in the internet gambling industry took drastic measures and started initially to trade off stock on the London Stock สมัคร UFABET168 Exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online gambling site stated that they’d cease their ties with the 920,000 active US customers they already have only once Bush actually signs the brand new act.
Although the brand new 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 right down to $1.42 on the British Market and announced so it would definitely no more continue its online gambling business in the United States.
This isn’t the initial Act, however, that has given the government capacity to breakdown the internet gambling industry. Beneath the 1961 Wire Act, the government has the best to brake down online betting in sports, poker and other casino games which can be regarded as illegal under the law.
That 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 turn off or move out but what’s clear is that they are no more welcome in the United States.
The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies running around 2,300 online gambling sites around the world is going to be facing extinction and will likely be wiped out of the industry all together. The few firms that manage to reside through this incredible crisis must deal with a massive cut back on their revenue and find out new ways of growing again. The thought of opening in the Asian market has changed into a favored idea for many.