888 and Bwin shares skyrocket as US wagering competitors closed
18 April 2011
Shares in London-listed online wagering firms rose after some big poker sites in the US were shut for alleged illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would enhance their operations.
On Friday, 11 individuals linked to three major poker sites were charged with offenses, consisting of scams.
The US probe includes 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the yohaig code three online poker sites of manipulating banks to process billion of dollars in unlawful revenue.
According to Execution Noble expert Geetanjali Sharma: "The closure of the main competitors' operations and the US legal proceedings started versus them must benefit European noted operators."
Playtech, another gaming website, likewise saw its shares leap 11%.
'Criminal fraud scheme'
Prosecutors in New York City City on Friday stated they had issued restraining orders versus more than 75 bank accounts in 14 countries utilized by the poker business.
US Attorney Preet Bharara said the sites "prepared an intricate criminal fraud scheme, at the same time fooling some US banks and successfully bribing others to guarantee the continued circulation of billions in illegal gambling revenues".
The indictment stated 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 betting businesses to accept most kinds of payment from people involved in illegal web betting.
The indictment looked for $3bn (₤ 1.8 bn) in money laundering charges and loss from the sites.
The authorities stated Absolute Poker had said soon after the law was enacted that the US Congress had no control over the company's payment deals.
PokerStars published a declaration to its gamers on Saturday, stating it needed to suspend real money play for consumers based in the US.
"Please be guaranteed gamer balances are safe. There is no cause for issue," the business stated.
"For all clients outside the US, it is service as normal."
A message posted on the PokerStars.com site by the yohaig code FBI said the firm had actually taken the domain in connection with the examination.
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