There is a brand new law waiting to be signed by President Bush that 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 likely to be signed by President Bush, will practically complete all online gambling sites by rendering it illegal for almost any bank, bank card company or online payment system to process any payments being built to online gambling companies.
The newest law states that Online Gambling sites are now actually banned from accepting almost any check, bank card or electronic transfer payments for internet gaming in the US and seriously puts the in chaos.
Surprised at the passing of this new debilitating law, the leaders in the internet 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 stated that they would cease their ties with the 920,000 active US customers they now have only when Bush actually signs the brand new act.
Although the brand new law hasn’t yet been signed, the has already been 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 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 first Act, however, that has given the us government power to break down the internet gambling industry. Underneath the 1961 Wire Act, the us government has the right to brake down online betting in sports, poker and other casino games that are considered to be illegal beneath the law.
That is seriously debilitating the industries economy as 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 power down 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 caught 2,300 online gambling sites around the globe will be facing extinction and will likely be wiped out from the industry all together. The small number of companies that manage to call home through this incredible crisis must deal with a massive cut back on their revenue and determine new ways of growing again. The thought of setting up in the Asian market has changed into a favored idea for many.