888 and Bwin shares soar as US wagering rivals closed
18 April 2011
Shares in London-listed online betting companies rose after some big poker websites in the US were shut for supposed illegal 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.
On Friday, 11 individuals linked to 3 significant poker websites were charged with offences, consisting of fraud.
The US probe involves 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the three online poker sites of controling banks to process billion of dollars in illegal earnings.
According to Execution Noble expert Geetanjali Sharma: "The closure of the main competitors' operations and the US legal proceedings started against them need to benefit European listed operators."
Playtech, another video gaming site, also saw its shares leap 11%.
'Criminal scams plan'
Prosecutors in New York City on Friday said they had actually provided limiting orders against more than 75 savings account in 14 countries utilized by the poker companies.
US Attorney Preet Bharara said the websites "cooked up a fancy criminal fraud plan, at the yohaig code same time tricking some US banks and efficiently bribing others to assure the continued flow of billions in illegal betting revenues".
The indictment said the three gambling websites did not comply with the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for gambling companies to accept most forms of payment from individuals included in unlawful internet betting.
The indictment sought $3bn (₤ 1.8 bn) in money laundering penalties and forfeit from the sites.
the yohaig code authorities said Absolute Poker had said shortly after the law was enacted that the US Congress had no control over the company's payment deals.
PokerStars posted a statement to its gamers on Saturday, saying it needed to suspend real cash play for clients based in the US.
"Please be assured gamer balances are safe. There is no cause for issue," the business stated.
"For all consumers outside the yohaig code US, it is organization as typical."
A message posted on the PokerStars.com website by the FBI stated the agency had seized the domain in connection with the examination.
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