There is a new law waiting to be signed by President Bush that was presented to Congress that's holding the $12 billion online gambling industry by way of a thread. It appears that Tennessee Senator Bill Frist, introduced the bill on Saturday by joining it to the Safe Port Act before Congress took its election recess in November. The Unlawful Internet Gambling Enforcement Act that's expected to be signed by President Bush, will practically finish off all online gambling sites by making it illegal for almost any bank, credit card company or online payment system to process any payments being made to online gambling companies.
The new law states that Online Gambling sites are now actually banned from accepting any type of check, credit card or electronic transfer payments for internet gaming in the US and seriously puts the industry in chaos. Surprised at the passing of this new debilitating law, the leaders in the online gambling industry took drastic measures and started initially to trade off stock on the London Stock Exchange which erased $8 billion from the industry. PartyGaming, the world's biggest online gambling site said that they'd cease their ties with the 920,000 active US customers they already have only when Bush actually signs the brand new act.
Although the brand new law hasn't yet been signed, the industry has already been being drastically affected. PartyGaming's stocks alone have dropped 60% ending up at a measly .81 cents a share result macau 4d. Other sites like SportingBet and 888 Holding were also suffering from the change and have since lost a lot of money on their shares. 888 Holding, as an example, had a 48% decrease on their shares dropping them down to $1.42 on the British Market and announced so it would definitely no further continue its online gambling business in the United States.
This isn't the initial Act, however, that's given the federal government power to break down the online gambling industry. Under the 1961 Wire Act, the federal government has the best to brake down online betting in sports, poker and other casino games which are regarded as illegal under the law. This is seriously debilitating the industries economy as the US consumer market is accountable for 50-60% of the online gambling revenue. These critical laws against the online gambling site owners are forcing companies to power down or move out but what's clear is that they're no further welcome in the United States.
The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies playing around 2,300 online gambling sites around the globe will undoubtedly be facing extinction and will likely be wiped from the industry all together. The small number of firms that manage to call home through this incredible crisis must live with an enormous cut back on their revenue and figure out new methods for growing again. The idea of opening in the Asian market has become a favored idea for many.