There’s a fresh 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 complete all online gambling sites by which makes 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 newest 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 a in chaos.
Surprised at the passing with this 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 stated that they’d cease their ties with the 920,000 active US customers they already have only when Bush actually signs the new act.
Although the new law hasn’t yet been signed, a is 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 suffering from the change and have since lost a fortune on their shares. 888 Holding, for instance, 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 longer continue its online gambling business in the United States.
This isn’t the first Act, however, that’s given the government power to breakdown the web gambling industry. Underneath 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.
That is seriously debilitating the industries economy as 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 shut down or re-locate but what’s clear is they are no longer 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 world is going to be facing extinction and will likely be wiped from the industry all together. The small number of firms that manage to live through this incredible crisis must deal with an enormous reduce their revenue and determine new means of growing again. The thought of opening in the Asian market has turned into a favored idea for many.