888 and Bwin shares soar as US wagering 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 illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would enhance their operations.
On Friday, 11 individuals linked to 3 major 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 3 online poker sites of manipulating banks to process billion of dollars in unlawful profits.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the yohaig code primary competitors' operations and the US legal proceedings initiated versus them should 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 stated they had actually released restraining orders versus more than 75 bank accounts in 14 countries used by the poker companies.
US Attorney Preet Bharara said the websites "created an elaborate criminal scams plan, alternately deceiving some US banks and efficiently bribing others to guarantee the ongoing circulation of billions in unlawful gaming revenues".
The indictment stated the 3 gambling websites did not comply with 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 people associated with illegal internet betting.
The indictment looked for $3bn (₤ 1.8 bn) in cash laundering charges and loss from the sites.
The authorities stated Absolute Poker had actually stated soon after the law was enacted that the yohaig code US Congress had no control over the yohaig code business's payment deals.
PokerStars posted a statement to its gamers on Saturday, saying it had to suspend genuine cash play for customers based in the yohaig code US.
"Please be ensured player balances are safe. There is no cause for concern," the business stated.
"For all customers outside the US, it is business as normal."
A message posted on the PokerStars.com site by the FBI stated the agency had actually seized the domain in connection with the yohaig code examination.
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