888 and Bwin Shares Soar as US Betting Rivals Closed
888 and Bwin shares soar as US wagering competitors closed
18 April 2011
Shares in London-listed online wagering companies surged after some big poker sites in the US were shut for alleged unlawful 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 connected to three major poker websites were charged with offenses, consisting of fraud.
The US probe involves 3 sites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker websites 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 proceedings started versus them need to benefit European noted operators."
Playtech, another gaming site, also saw its shares leap 11%.
'Criminal fraud scheme'
Prosecutors in New York City on Friday said they had actually released limiting orders versus more than 75 checking account in 14 nations used by the poker business.
US Attorney Preet Bharara stated the sites "cooked up an intricate criminal fraud plan, at the same time fooling some US banks and successfully bribing others to guarantee the continued circulation of billions in illegal betting earnings".
The indictment said the three betting sites did not stick to the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for gambling businesses to accept most kinds of payment from individuals associated with illegal web gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeiture from the sites.
888 and Bwin shares soar as US wagering competitors closed
18 April 2011
Shares in London-listed online wagering companies surged after some big poker sites in the US were shut for alleged unlawful 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 connected to three major poker websites were charged with offenses, consisting of fraud.
The US probe involves 3 sites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities accused the three online poker websites 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 proceedings started versus them need to benefit European noted operators."
Playtech, another gaming site, also saw its shares leap 11%.
'Criminal fraud scheme'
Prosecutors in New York City on Friday said they had actually released limiting orders versus more than 75 checking account in 14 nations used by the poker business.
US Attorney Preet Bharara stated the sites "cooked up an intricate criminal fraud plan, at the same time fooling some US banks and successfully bribing others to guarantee the continued circulation of billions in illegal betting earnings".
The indictment said the three betting sites did not stick to the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it illegal for gambling businesses to accept most kinds of payment from individuals associated with illegal web gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeiture from the sites.