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 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’s likely to be signed by President Bush, will practically finish off all online gambling sites by rendering it illegal for 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 actually banned from accepting any type of check, bank card or electronic transfer payments for internet gaming in the US and seriously puts the in chaos.
Surprised at the passing of the new debilitating law, the leaders in the web gambling industry took drastic measures and began 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 if Bush actually signs the brand new act.
Although the brand new law hasn’t yet been signed, the 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, for example, had a 48% decrease on the 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 first Act, however, that has given the federal government capacity to breakdown the web 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 are regarded as illegal beneath 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 turn off or transfer 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 walking around 2,300 online gambling sites all over the world will undoubtedly be facing extinction and will in all probability be wiped from the industry all together. The few firms that manage to call home through this incredible crisis will have to deal with a massive cut back on their revenue and find out new means of growing again. The idea of setting up in the Asian market has changed into a favored idea for many.