888 and Bwin shares skyrocket as US betting rivals closed

18 April 2011

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

At the close of trading, Bwin were up 30% and 888 up 15% as investors hypothesized that the US closures would increase their operations.

On Friday, 11 individuals linked to three significant poker sites were charged with offenses, including scams.

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

Federal US authorities accused the 3 online poker websites of manipulating banks to process billion of dollars in unlawful profits.

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

Playtech, another video gaming site, also saw its shares leap 11%.

'Criminal scams scheme'

Prosecutors in New York City on Friday stated they had issued restraining orders versus more than 75 savings account in 14 nations used by the poker business.

US Attorney Preet Bharara stated the sites "cooked up a fancy criminal fraud scheme, alternately fooling some US banks and successfully paying off others to ensure the ongoing flow of billions in unlawful gaming earnings".

The indictment said the 3 betting websites did not comply with the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.

The law makes it prohibited for betting businesses to accept most forms of payment from individuals included in illegal web betting.

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

the yohaig code authorities stated Absolute Poker had actually said shortly after the law was enacted that the US Congress had no control over the company's payment transactions.

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

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

"For all clients outside the US, it is service as usual."

A message posted on the PokerStars.com website by the FBI stated the agency had actually seized the domain name in connection with the examination.

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