888 And Bwin Shares Soar As US Betting Rivals Closed
888 and Bwin shares soar as US betting rivals closed
18 April 2011
Shares in London-listed online wagering firms rose after some big poker websites in the US were shut for activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would increase their operations.
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On Friday, 11 people linked to three major poker websites were charged with offenses, including scams.
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The US probe involves 3 sites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker websites of controling banks to process billion of dollars in illegal revenue.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the primary competitors' operations and the US legal procedures initiated against them should benefit European noted operators."
Playtech, another gaming website, likewise saw its shares jump 11%.
'Criminal fraud plan'
Prosecutors in New York City City on Friday stated they had provided restraining orders against more than 75 bank accounts in 14 nations utilized by the poker business.
US Attorney Preet Bharara said the sites "prepared a sophisticated criminal scams scheme, alternately deceiving some US banks and efficiently paying off others to assure the continued flow of billions in illegal gambling revenues".
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The indictment said the three betting websites did not stick to the US Unlawful Internet Gambling Enforcement Act, established in October 2006.
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The law makes it illegal for betting services to accept most kinds of payment from individuals associated with illegal internet betting.
the yohaig code indictment looked for $3bn (₤ 1.8 bn) in cash laundering charges and loss from the websites.
The authorities said Absolute Poker had stated soon after the law was enacted that the US Congress had no control over the business's payment transactions.
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PokerStars posted a statement to its gamers on Saturday, saying it had to suspend genuine money play for customers based in the US.
"Please be ensured player balances are safe. There is no cause for issue," the company stated.
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"For all consumers outside the US, it is service as normal."
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A message posted on the PokerStars.com site by the FBI said the company had actually taken the domain in connection with the investigation.
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