888 and Bwin shares soar as US betting competitors closed
18 April 2011
Shares in London-listed online wagering firms surged after some big poker websites in the yohaig code US were shut for alleged unlawful activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would improve their operations.
On Friday, 11 individuals connected to 3 significant poker sites 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 controling banks to process billion of dollars in unlawful income.
According to Execution Noble expert Geetanjali Sharma: "The closure of the main competitors' operations and the US legal procedures started versus them should benefit European listed operators."
Playtech, another gaming site, also saw its shares leap 11%.
'Criminal fraud plan'
Prosecutors in New York City City on Friday said they had provided limiting orders versus more than 75 bank accounts in 14 countries used by the poker business.
US Attorney Preet Bharara said the websites "cooked up an intricate criminal fraud scheme, alternately fooling some US banks and efficiently bribing others to guarantee the continued flow of billions in prohibited gaming earnings".
The indictment said the three gambling sites did not stick to the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it unlawful for gambling companies to accept most types of payment from people involved in illegal internet gambling.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and loss from the sites.
The authorities stated Absolute Poker had actually said soon after the law was enacted that the yohaig code US Congress had no control over the company's payment transactions.
PokerStars posted a declaration to its gamers on Saturday, stating it needed to suspend genuine money play for clients based in the US.
"Please be ensured gamer balances are safe. There is no cause for concern," the company said.
"For all consumers outside the US, it is service as typical."
A message posted on the PokerStars.com website by the FBI stated the agency had actually seized the domain name in connection with the examination.
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