There is a brand new law waiting to be signed by President Bush that has been presented to Congress that’s holding the $12 billion online gambling industry by a thread. It appears 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 making it illegal for just about any bank, bank 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 now 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 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 สมัคร UFABET168  Exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online gambling site stated that they would cease their ties with the 920,000 active US customers they actually have only if Bush actually signs the new act.

Although the new law hasn’t yet been signed, a is already 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 afflicted with the change and have since lost a bundle on the shares. 888 Holding, for instance, 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 further continue its online gambling business in the United States.

This isn’t the initial Act, however, that has given the federal government capacity to breakdown the internet gambling industry. Underneath the 1961 Wire Act, the federal government has the right to brake down online betting in sports, poker and other casino games which can be regarded as being illegal beneath the law.

This is seriously debilitating the industries economy because 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 turn off or re-locate but what’s clear is they are no further 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 is going to be facing extinction and will likely be wiped out of the industry all together. The few companies that manage to call home through this incredible crisis will need to deal with a huge scale back on their revenue and find out new means of growing again. The idea of opening in the Asian market has changed into a favored idea for many.

Leave a Reply

Your email address will not be published. Required fields are marked *