There is a brand new law waiting to be signed by President Bush that has been presented to Congress that is holding the $12 billion online gambling industry with 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 is likely to be signed by President Bush, will practically end all online gambling sites by which makes it illegal for just about any bank, charge card company or online payment system to process any payments being designed to online gambling companies.
The newest law states that Online Gambling sites are now banned from accepting almost any check, charge card or electronic transfer payments for internet gaming in the US and seriously puts the industry in chaos.
Surprised at the passing of the new debilitating law, the leaders in the web 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’d cease their ties with the 920,000 active US customers they already have only if Bush actually signs the new act.
Although the new law hasn’t yet been signed, the industry 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 affected by the change and have since lost a fortune on the shares. 888 Holding, like, had a 48% decrease on the 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 initial Act, however, that has given the us government power to break down the web gambling industry. Underneath the 1961 Wire Act, the us government has the best to brake down online betting in sports, poker and other casino games which can be considered to be illegal under the law.
This is seriously debilitating the industries economy since the US consumer market is in charge of 50-60% of the web gambling revenue. These critical laws against the web gambling site owners are forcing companies to shut down or move out but what’s clear is 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 playing around 2,300 online gambling sites around the globe is going to be facing extinction and will most likely be wiped out from the industry all together. The few firms that manage to call home through this incredible crisis will need to live with a massive cut back on their revenue and find out new ways of growing again. The idea of opening up in the Asian market has turned into a favored idea for many.