888 and Bwin shares skyrocket as US wagering rivals closed
18 April 2011
Shares in London-listed online betting firms rose after some huge poker websites in the US were shut for alleged prohibited activity.
At the close of trading, Bwin were up 30% and 888 up 15% as financiers hypothesized that the US closures would improve their operations.
On Friday, 11 people connected to 3 significant poker websites were charged with offences, including scams.
The US probe involves 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the 3 online poker sites of controling banks to process billion of dollars in unlawful income.
According to Execution Noble expert Geetanjali Sharma: "the yohaig code closure of the main rivals' operations and the US legal proceedings initiated against them need to benefit European listed operators."
Playtech, another video gaming site, also saw its shares jump 11%.
'Criminal fraud plan'
Prosecutors in New York City City on Friday said they had provided restraining orders versus more than 75 bank accounts in 14 nations utilized by the poker business.
US Attorney Preet Bharara said the websites "concocted an elaborate criminal fraud scheme, at the same time fooling some US banks and effectively bribing others to guarantee the ongoing circulation of billions in prohibited gambling revenues".
The indictment said the three gambling sites did not comply with the US Unlawful Internet Gambling Enforcement Act, established in October 2006.
The law makes it prohibited for betting services to accept most forms of payment from individuals associated with illegal internet gambling.
The indictment sought $3bn (₤ 1.8 bn) in cash laundering penalties and forfeiture from the sites.
The authorities stated Absolute Poker had said shortly after the law was enacted that the US Congress had no control over the business's payment deals.
PokerStars published a statement to its players on Saturday, stating it needed to suspend genuine money play for clients 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 business as typical."
A message posted on the PokerStars.com site by the FBI said the agency had taken the domain name in connection with the examination.
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