Online Gambling May be Cut off By New Legislation

There’s a new law waiting to be signed by President Bush that has been presented to Congress that is holding the $12 billion online gambling industry by 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 expected to be signed by President Bush, will practically complete all online gambling sites by which makes it illegal for just about any bank, bank card company or online payment system to process any payments being made to online gambling companies.

The brand new law states that Online Gambling sites are now actually banned from accepting any kind of check, bank card or electronic transfer payments for internet gaming in the US and seriously puts the in chaos.

Surprised at the passing with this new debilitating law, the leaders in the online gambling industry took drastic measures and started to trade off stock on the London Stock Exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online gambling site said that they would cease their ties with the 920,000 active US customers they now have only once Bush actually signs the newest act.

Although the newest law hasn’t yet been signed, the is already being drastically affected. PartyGaming’s stocks alone have dropped 60% finding yourself at a measly .81 cents a share sites like SportingBet and 888 Holding were also suffering from the change and have since lost a bundle on the shares. 888 Holding, as an example, had a 48% decrease on the shares dropping them down seriously to $1.42 on the British Market and announced that it would no more continue its online gambling business in the United States.

This isn’t the initial Act, however, that has given the government power to break up the online gambling industry. Under the 1961 Wire Act, the government has the right to brake down online betting in sports, poker and other casino games which are regarded as being illegal under the law.

This is seriously debilitating the industries economy since the US consumer market is accountable for 50-60% of the online gambling revenue. These critical laws against the online gambling site owners are forcing companies to turn off or move out but what’s clear is that they’re no more welcome in the United States.

The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies running around 2,300 online gambling sites around the world will be facing extinction and will most likely be wiped out of the industry all together. The few companies that manage to call home through this incredible crisis must deal with an enormous cut back on their revenue and find out new ways of growing again. The idea of setting up in the Asian market has changed into a favored idea for many.

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