There is a new law waiting to be signed by President Bush that was introduced to Congress and that keeps the online gambling industry $ 12 billion on a thread. It appears that Tennessee Senator Bill Frist introduced the bill on Saturday by linking it to the Safe Harbor Act before Congress took its election recess in November.
The Illegal Internet Gambling Enforcement Act, which is expected to be signed by President Bush, will virtually wipe out all online gambling sites by making it illegal for any bank, credit card company, or online payment system to process payments made to online gambling companies.
The new law establishes that online gambling sites are now prohibited from accepting any type of check, credit card, or wire transfer payments for Internet games in the US and seriously puts the industry in chaos.
Shocked by the passage of this debilitating new law, leaders in the online gambling industry cracked down and began trading stocks on the London Stock UFABET Exchange, wiping $ 8 billion from the industry. PartyGaming, the world’s largest online gambling site, said it would drop its ties to the 920,000 active US customers it currently has only when Bush signs the new law.
Although the new law has yet to be signed, the industry is already being drastically affected. Only PartyGaming shares are down 60% and ended at a measly 0.81 cents a share. Other sites like SportingBet and 888 Holding were also affected by the change and have since lost a lot of money on their shares. 888 Holding, for example, had a 48% decline in its shares, dropping them to $ 1.42 in the British market and announced that it would no longer continue its online gambling business in the United States.
However, this is not the first law that has given the federal government power to take down the online gambling industry. Under the Bank Transfers Act of 1961, the federal government has the right to eliminate online gambling on sports, poker, and other casino games that are considered illegal under the law.
This is seriously weakening the industry economy because the US consumer market is responsible for 50-60% of online gaming revenue. These critical laws against online gambling site owners are forcing businesses to close or move, but what is clear is that they are no longer welcome in the United States.
Interactive Gaming Council President Sue Schneider has predicted that more than 500 companies operating around 2,300 online gambling sites around the world will face extinction and most likely disappear from the industry altogether. The small number of companies that manage to survive this incredible crisis will have to live with a large reduction in their income and discover new ways to grow again. The idea of opening up to the Asian market has become a favorite idea for many.