There’s a fresh law waiting to be signed by President Bush which was presented to Congress that’s holding the $12 billion online gambling industry by way of 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 expected to be signed by President Bush, will practically complete all online gambling sites by making it illegal for any bank, credit card company or online payment system to process any payments being designed to online gambling companies.
The brand new law states that Online Gambling sites are now banned from accepting any kind of check, credit card or electronic transfer payments for internet gaming in the US and seriously puts the industry 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 said that they would cease their ties with the 920,000 active US customers they currently have only if Bush actually signs the newest act.
Although the newest law hasn’t yet been signed, the industry 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 fortune on their shares. 888 Holding, for example, had a 48% decrease on their shares dropping them right down to $1.42 on the British Market and announced so it would 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 right to brake down online betting in sports, poker and other casino games which are considered to be illegal under the law.
This is seriously debilitating the industries economy since the US consumer market is responsible for 50-60% of the internet gambling revenue. These critical laws against the internet gambling site owners are forcing companies to shut down or transfer 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 walking around 2,300 online gambling sites around the world will soon be facing extinction and will most likely be wiped from the industry all together. The small number of companies that manage to call home through this incredible crisis will have to live with a massive cut back on their revenue and find out new ways of growing again. The idea of setting up in the Asian market has turned into a favored idea for many.