888 and Bwin shares skyrocket as US wagering competitors closed
18 April 2011
Shares in London-listed online wagering 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 financiers hypothesized that the US closures would increase their operations.
On Friday, 11 people connected to 3 major poker sites were charged with offenses, including fraud.
the yohaig code US probe includes three websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker websites of controling banks to process billion of dollars in illegal revenue.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the primary rivals' operations and the US legal procedures started versus them should benefit European noted operators."
Playtech, another video gaming site, likewise saw its shares jump 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday stated they had provided limiting orders against more than 75 checking account in 14 nations used by the poker business.
US Attorney Preet Bharara stated the sites "concocted an intricate criminal scams plan, at the same time deceiving some US banks and efficiently paying off others to assure the ongoing circulation of billions in unlawful betting revenues".
The indictment stated the 3 betting websites did not follow the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it prohibited for gambling companies to accept most forms of payment from people involved in illegal web betting.
The indictment sought $3bn (₤ 1.8 bn) in cash laundering charges and forfeit from the sites.
The authorities stated Absolute Poker had actually said quickly after the law was enacted that the US Congress had no control over the business's payment transactions.
PokerStars published a declaration to its gamers on Saturday, stating it needed to suspend real cash play for clients based in the US.
"Please be guaranteed gamer balances are safe. There is no cause for issue," the company said.
"For all customers outside the US, it is business as usual."
A message published on the PokerStars.com site by the FBI said the firm had taken the domain in connection with the investigation.
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