A new law is that is awaiting the signature of President Bush which was recently presented to Congress which is tying an estimated $12 billion in the online gaming industry in a tight spot. It is believed the bill was introduced by Tennessee senator Bill Frist, introduced the bill on the weekend by adding it with the Safe Port Act before Congress went on recess for election in November.
The Unlawful Internet Gambling Enforcement Act that situs slot online is set to be signed by president Bush is expected to effectively close all gambling websites on the internet and make it unlawful for any credit card firm or online payment system to accept any payment made to gambling sites online.
The law changes state the following: Online Gambling sites are now prohibited from accepting any kind of credit card, check or electronic transfer to play online within the US and could put the gaming industry in chaos.
Bewildered by the passage of this law that is a shambles In the wake of this law, the top executives in the gambling industry on the internet adopted drastic measures and began to sell off shares in the London Stock Exchange which erased an estimated $8 billion from the business. PartyGaming the largest online gambling website, said they would end all ties with their 920,000 registered US customers that they currently have until Bush actually approves the law.
While the law isn’t yet signed but the industry is experiencing a major impact. PartyGaming’s stock has dropped 60%, and are now only .81 cents per share. Other sites such as SportingBet as well as 888 Holding were also affected by the changes which has resulted in the loss of a significant amount of money from their shares. 888 Holding is one example. saw a decrease of 48% in their shares, bringing them to $1.42 on the British Market and announced that it would cease its online gambling operations within the United States.
It’s not the first Act that gives the federal government the authority to shut down the gambling industry online. In the 1961 Wire Act, the federal government is able to regulate online betting in poker, sports and other games at casinos that are considered illegal in the eyes of the law.
This is seriously affecting the economic health of the industry since this US consumer market accounts for 50-60% of online gambling revenues. The enforcing of these laws against online gambling sites’ owners force companies to close down or leave, but the fact is they’re no longer welcomed to this part of the United States.
The Madam Chairperson of the Interactive Gaming Council, Sue Schneider has predicted that 500 companies operating more than 2,300 online gambling websites all over the world are in danger of going out of business and are likely to disappear from the business altogether. The few companies that are able to endure this apocalyptic catastrophe will be forced to live with a massive cut on their profits and find new ways to increase their revenue. The idea of opening up the Asian market is now the preferred option for many.