888 and Bwin shares skyrocket as US wagering competitors closed
18 April 2011
Shares in London-listed online betting companies rose after some huge poker sites in the US were shut for alleged unlawful activity.
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At the close of trading, Bwin were up 30% and 888 up 15% as financiers speculated that the US closures would improve their operations.
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On Friday, 11 people connected to three significant poker sites were charged with offences, including fraud.
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The US probe includes three websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the 3 online poker websites of controling banks to process billion of dollars in unlawful profits.
According to Execution Noble analyst Geetanjali Sharma: "the yohaig code closure of the main competitors' operations and the US legal procedures initiated versus them ought to benefit European noted operators."
Playtech, another gaming site, also saw its shares jump 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday said they had provided restraining orders versus more than 75 checking account in 14 nations used by the poker business.
US Attorney Preet Bharara said the sites "prepared a sophisticated criminal scams scheme, alternately fooling some US banks and successfully bribing others to ensure the ongoing circulation of billions in prohibited gambling revenues".
The indictment said the three gambling sites did not abide by the US Unlawful Internet Gambling Enforcement Act, established in October 2006.
The law makes it illegal for betting businesses to accept most kinds of payment from people associated with illegal web betting.
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The indictment sought $3bn (₤ 1.8 bn) in money laundering penalties and forfeiture from the sites.
The authorities said had said shortly after the law was enacted that the US Congress had no control over the business's payment deals.
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PokerStars posted a statement to its players on Saturday, saying it had to suspend real cash play for clients based in the yohaig code US.
"Please be ensured player balances are safe. There is no cause for issue," the business stated.
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"For all customers outside the US, it is company as normal."
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A message posted on the PokerStars.com website by the FBI said the company had seized the domain in connection with the examination.
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888 and Bwin Shares Soar as US Betting Rivals Closed
objgennie09913 edited this page 2025-10-22 13:14:35 +08:00