888 and Bwin shares soar as US wagering competitors closed

18 April 2011

Shares in London-listed online wagering firms rose after some big poker sites in the US were shut for supposed prohibited activity.

At the yohaig code close of trading, Bwin were up 30% and 888 up 15% as financiers speculated that the US closures would boost their operations.

On Friday, 11 people connected to three significant poker sites were charged with offenses, including fraud.

The US probe involves three websites: Full Tilt, PokerStars, and Absolute Poker.

Federal US authorities accused the three online poker websites of manipulating banks to process billion of dollars in illegal revenue.

According to Execution Noble expert Geetanjali Sharma: "The closure of the main competitors' operations and the US legal procedures started against them must benefit European noted operators."

Playtech, another video gaming website, likewise saw its shares jump 11%.

'Criminal fraud plan'

Prosecutors in New York City on Friday stated they had released limiting orders versus more than 75 bank accounts in 14 nations used by the poker business.

US Attorney Preet Bharara said the sites "concocted a fancy criminal scams scheme, at the same time tricking some US banks and successfully paying off others to assure the ongoing flow of billions in prohibited betting revenues".

The indictment said the 3 betting sites did not abide by the yohaig code US Unlawful Internet Gambling Enforcement Act, developed in October 2006.

The law makes it unlawful for gambling companies to accept most kinds of payment from individuals associated with illegal internet gaming.

The indictment looked for $3bn (₤ 1.8 bn) in cash laundering penalties and forfeiture from the sites.

The authorities said Absolute Poker had actually said soon after the law was enacted that the US Congress had no control over the company's payment deals.

PokerStars posted a statement to its gamers on Saturday, saying it had to suspend real cash play for customers based in the US.

"Please be assured player balances are safe. There is no cause for issue," the business stated.

"For all customers outside the US, it is company as typical."

A message posted on the PokerStars.com site by the FBI said the agency had actually seized the domain in connection with the investigation.

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