888 and Bwin Shares Soar as United States Betting Rivals Closed
888 and Bwin shares soar as US wagering competitors closed
18 April 2011
Shares in London-listed online betting firms surged after some big poker websites in the US were shut for alleged illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors speculated that the US closures would improve their operations.
On Friday, 11 people linked to three significant poker sites were charged with offences, consisting of fraud.
The US probe includes three websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker sites of controling banks to process billion of dollars in prohibited profits.
According to Execution Noble expert Geetanjali Sharma: "The closure of the main rivals' operations and the US legal procedures started against them must benefit European listed operators."
Playtech, another video gaming website, also saw its shares leap 11%.
'Criminal scams scheme'
Prosecutors in New York City City on Friday said they had actually issued restraining orders versus more than 75 savings account in 14 nations used by the poker companies.
US Attorney Preet Bharara stated the sites "prepared a sophisticated criminal scams plan, alternately tricking some US banks and successfully paying off others to assure the ongoing circulation of billions in unlawful gaming earnings".
The indictment said the 3 gambling websites did not stick to the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for betting businesses to accept most kinds of payment from people associated with unlawful internet gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeit from the websites.
888 and Bwin shares soar as US wagering competitors closed
18 April 2011
Shares in London-listed online betting firms surged after some big poker websites in the US were shut for alleged illegal activity.
At the close of trading, Bwin were up 30% and 888 up 15% as investors speculated that the US closures would improve their operations.
On Friday, 11 people linked to three significant poker sites were charged with offences, consisting of fraud.
The US probe includes three websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker sites of controling banks to process billion of dollars in prohibited profits.
According to Execution Noble expert Geetanjali Sharma: "The closure of the main rivals' operations and the US legal procedures started against them must benefit European listed operators."
Playtech, another video gaming website, also saw its shares leap 11%.
'Criminal scams scheme'
Prosecutors in New York City City on Friday said they had actually issued restraining orders versus more than 75 savings account in 14 nations used by the poker companies.
US Attorney Preet Bharara stated the sites "prepared a sophisticated criminal scams plan, alternately tricking some US banks and successfully paying off others to assure the ongoing circulation of billions in unlawful gaming earnings".
The indictment said the 3 gambling websites did not stick to the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for betting businesses to accept most kinds of payment from people associated with unlawful internet gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeit from the websites.