888 and Bwin shares skyrocket as US wagering competitors closed
18 April 2011
Shares in London-listed online wagering firms rose after some huge poker sites in the US were shut for supposed prohibited activity.
At the close of trading, Bwin were up 30% and 888 up 15% as financiers speculated that the US closures would boost their operations.
On Friday, 11 individuals connected to three major poker sites were charged with offenses, consisting of fraud.
The US probe involves three websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the 3 online poker websites of controling banks to process billion of dollars in unlawful earnings.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the main rivals' operations and the US legal procedures initiated versus them ought to benefit European listed operators."
Playtech, another gaming site, also saw its shares leap 11%.
'Criminal scams plan'
Prosecutors in New York City on Friday said they had actually provided limiting orders against more than 75 bank accounts in 14 nations utilized by the poker business.
US Attorney Preet Bharara said the sites "prepared an elaborate criminal fraud scheme, alternately tricking some US banks and efficiently bribing others to ensure the continued flow of billions in illegal gaming profits".
The indictment stated the three betting sites did not abide by the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it unlawful for betting services to accept most types of payment from individuals associated with unlawful internet gambling.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and loss from the websites.
The authorities stated Absolute Poker had actually stated shortly after the law was enacted that the US Congress had no control over the business's payment transactions.
PokerStars published a statement to its players on Saturday, stating it had to suspend genuine money play for consumers based in the US.
"Please be ensured gamer balances are safe. There is no cause for concern," the company said.
"For all customers outside the US, it is organization as typical."
A message published on the PokerStars.com site by the FBI said the agency had seized the domain name in connection with the investigation.
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