There’s a new law waiting to be signed by President Bush which was presented to Congress that is 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 is expected to be signed by President Bush, will practically finish off all online gambling sites by making it illegal for just about any bank, credit card company or online payment system to process any payments being built to online gambling companies.
The brand new law states that Online Gambling sites are now banned from accepting any type 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 web gambling industry took drastic measures and started 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 already have only once Bush actually signs the new act.
Although the new law hasn’t yet been signed, the industry is being drastically affected. PartyGaming’s stocks alone have dropped 60% finding yourself at a measly .81 cents a share. Other sites like SportingBet and 888 Holding were also suffering from the change and have since lost a bundle 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 was going to 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 break up 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 that are regarded as illegal beneath the law.
That is seriously debilitating the industries economy since the US consumer market is responsible for 50-60% of the web gambling revenue. These critical laws against the web gambling site owners are forcing companies to turn off or move out but what’s clear is that they’re no further 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 all over the world is likely to be facing extinction and will most likely be wiped out from the industry all together. The few companies that manage to call home through this incredible crisis will have to live with a huge cut back on their revenue and figure out new methods for growing again. The notion of setting up in the Asian market has become a favored idea for many.