888 and Bwin Shares Soar as US Betting Rivals Closed
888 and Bwin shares skyrocket as US wagering rivals closed
18 April 2011
Shares in London-listed online wagering firms surged after some big poker websites in the US were shut for supposed illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors speculated that the US closures would boost their operations.
On Friday, 11 individuals connected to three major poker sites were charged with offences, including scams.
The US probe includes three sites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the 3 online poker websites of manipulating banks to process billion of dollars in unlawful revenue.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the main competitors' operations and the US legal procedures started against them need to benefit European noted operators."
Playtech, another gaming site, likewise saw its shares leap 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday said they had actually issued restraining orders versus more than 75 savings account in 14 countries utilized by the poker companies.
US Attorney Preet Bharara said the sites "prepared an intricate criminal scams scheme, at the same time tricking some US banks and successfully bribing others to assure the continued flow of billions in illegal gaming profits".
The indictment said the 3 betting websites 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 types of payment from individuals included in illegal internet gaming.
The indictment looked for $3bn (₤ 1.8 bn) in money laundering penalties and loss from the websites.
888 and Bwin shares skyrocket as US wagering rivals closed
18 April 2011
Shares in London-listed online wagering firms surged after some big poker websites in the US were shut for supposed illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors speculated that the US closures would boost their operations.
On Friday, 11 individuals connected to three major poker sites were charged with offences, including scams.
The US probe includes three sites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the 3 online poker websites of manipulating banks to process billion of dollars in unlawful revenue.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the main competitors' operations and the US legal procedures started against them need to benefit European noted operators."
Playtech, another gaming site, likewise saw its shares leap 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday said they had actually issued restraining orders versus more than 75 savings account in 14 countries utilized by the poker companies.
US Attorney Preet Bharara said the sites "prepared an intricate criminal scams scheme, at the same time tricking some US banks and successfully bribing others to assure the continued flow of billions in illegal gaming profits".
The indictment said the 3 betting websites 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 types of payment from individuals included in illegal internet gaming.
The indictment looked for $3bn (₤ 1.8 bn) in money laundering penalties and loss from the websites.