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Gambling firms see shares plunge | Gambling firms see shares plunge |
(about 1 hour later) | |
Shares of online gaming firms have plunged after the US Congress passed a bill cracking down on internet gambling, threatening their business. | Shares of online gaming firms have plunged after the US Congress passed a bill cracking down on internet gambling, threatening their business. |
Shares in Partygaming fell by nearly 60% in London trade, while shares in 888 Holdings tumbled by more than 45%. | Shares in Partygaming fell by nearly 60% in London trade, while shares in 888 Holdings tumbled by more than 45%. |
Sportingbet shares fell by nearly 60% while Empire Online shares slid 27%. | |
Several firms have said they could stop taking bets from US customers if the bill is signed into law by President George W Bush in the next two weeks. | |
The law, part of a clampdown on online gaming in the US, would make it illegal for banks and credit card firms to process online gaming payments from the US. | |
'Shadow industry' | |
Companies in the online gambling arena have faced a turbulent year as the threat of a legal crackdown from the US has depressed share prices. | Companies in the online gambling arena have faced a turbulent year as the threat of a legal crackdown from the US has depressed share prices. |
The bottom line is simple. Internet gambling is illegal Bill Frist, US Senate Majority Leader See Partygaming shares href="http://part of a clampdown on online gaming in the US." class="">See Sportingbet shares href="http://newsvote.bbc.co.uk/1/shared/fds/hi/business/market_data/shares/3/33558/intraday.stm" class="">See Empire Online shares | |
Bosses from two firms, Sportingbet and Betonsports, were arrested on illegal gambling charges. | Bosses from two firms, Sportingbet and Betonsports, were arrested on illegal gambling charges. |
Most analysts expected there would not be enough time for US Congress to pass a specific law against online gambling before next month's mid-term elections. | Most analysts expected there would not be enough time for US Congress to pass a specific law against online gambling before next month's mid-term elections. |
But lawmakers took the industry by surprise when an "Unlawful Internet Gambling Enforcement Act" was eventually attached to an unrelated bill aimed at improving port security. | But lawmakers took the industry by surprise when an "Unlawful Internet Gambling Enforcement Act" was eventually attached to an unrelated bill aimed at improving port security. |
"Congress has grappled with this issue for 10 years and during that time we have watched this shadow industry explode," said Bill Frist, Senate Majority Leader. | "Congress has grappled with this issue for 10 years and during that time we have watched this shadow industry explode," said Bill Frist, Senate Majority Leader. |
"For me as majority leader, the bottom line is simple. Internet gambling is illegal." | "For me as majority leader, the bottom line is simple. Internet gambling is illegal." |
UK betting giant William Hill recently said it was closing its US gaming business pending clarification of the industry's legal position. | UK betting giant William Hill recently said it was closing its US gaming business pending clarification of the industry's legal position. |