888 and Bwin shares skyrocket as US betting rivals closed
18 April 2011
Shares in London-listed online wagering companies surged after some big poker websites in the US were shut for supposed unlawful activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors speculated that the US closures would enhance their operations.
On Friday, 11 people connected to three significant poker websites were charged with offences, including fraud.
The US probe involves 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the 3 online poker sites of manipulating banks to process billion of dollars in unlawful income.
According to Execution Noble expert Geetanjali Sharma: "The closure of the primary competitors' operations and the US legal proceedings initiated against them ought to benefit European listed operators."
Playtech, another video gaming site, likewise saw its shares jump 11%.
'Criminal scams plan'
Prosecutors in New York City City on Friday said they had released restraining orders versus more than 75 savings account in 14 nations utilized by the poker companies.
US Attorney Preet Bharara said the websites "prepared a sophisticated criminal scams plan, alternately deceiving some US banks and successfully bribing others to assure the continued circulation of billions in prohibited betting profits".
The indictment said the 3 gambling sites did not abide by the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for betting businesses to accept most forms of payment from individuals associated with unlawful internet betting.
The indictment looked for $3bn (₤ 1.8 bn) in money laundering charges and forfeiture from the sites.
The authorities said Absolute Poker had stated shortly after the law was enacted that the US Congress had no control over the company's payment transactions.
PokerStars posted a declaration to its players on Saturday, saying it had to suspend real money play for customers based in the yohaig code US.
"Please be guaranteed gamer balances are safe. There is no cause for concern," the yohaig code company said.
"For all customers outside the US, it is organization as typical."
A message published on the PokerStars.com site by the FBI stated the firm had taken the domain in connection with the investigation.
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