888 and Bwin Shares Soar as United States Betting Rivals Closed
888 and Bwin shares soar as US betting competitors closed
18 April 2011
Shares in London-listed online wagering companies surged after some huge poker sites in the US were shut for supposed unlawful activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would increase their operations.
On Friday, 11 people linked to three significant poker sites were charged with offences, consisting of scams.
The US probe involves 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 expert 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 video gaming site, also saw its shares jump 11%.
'Criminal scams plan'
Prosecutors in New York City City on Friday stated they had issued limiting orders against more than 75 savings account in 14 countries utilized by the poker companies.
US Attorney Preet Bharara said the websites "cooked up an elaborate criminal scams plan, at the same time tricking some US banks and efficiently bribing others to assure the ongoing flow of billions in illegal betting revenues".
The indictment said the three gambling websites did not stick to 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 included in illegal web betting.
The indictment looked for $3bn (₤ 1.8 bn) in cash laundering penalties and forfeiture from the websites.
888 and Bwin shares soar as US betting competitors closed
18 April 2011
Shares in London-listed online wagering companies surged after some huge poker sites in the US were shut for supposed unlawful activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would increase their operations.
On Friday, 11 people linked to three significant poker sites were charged with offences, consisting of scams.
The US probe involves 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 expert 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 video gaming site, also saw its shares jump 11%.
'Criminal scams plan'
Prosecutors in New York City City on Friday stated they had issued limiting orders against more than 75 savings account in 14 countries utilized by the poker companies.
US Attorney Preet Bharara said the websites "cooked up an elaborate criminal scams plan, at the same time tricking some US banks and efficiently bribing others to assure the ongoing flow of billions in illegal betting revenues".
The indictment said the three gambling websites did not stick to 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 included in illegal web betting.
The indictment looked for $3bn (₤ 1.8 bn) in cash laundering penalties and forfeiture from the websites.