888 and Bwin Shares Soar as US Betting Rivals Closed
888 and Bwin shares skyrocket as US betting rivals closed
18 April 2011
Shares in London-listed online betting companies surged after some big poker sites in the US were shut for supposed prohibited activity.
At the close of trading, Bwin were up 30% and 888 up 15% as financiers speculated that the US closures would increase their operations.
On Friday, 11 individuals connected to three significant poker sites were charged with offenses, including fraud.
The US probe includes 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the three online poker websites of manipulating banks to process billion of dollars in illegal profits.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the primary rivals' operations and the US legal proceedings started against them should benefit European noted operators."
Playtech, another video gaming website, likewise saw its shares leap 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday said they had actually released limiting orders against more than 75 bank accounts in 14 countries used by the poker companies.
US Attorney Preet Bharara said the sites "cooked up an intricate criminal scams scheme, alternately fooling some US banks and effectively bribing others to ensure the ongoing flow of billions in illegal betting earnings".
The indictment said the 3 gambling websites did not follow the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it prohibited for gambling services to accept most kinds of payment from people associated with illegal internet gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeit from the sites.
888 and Bwin shares skyrocket as US betting rivals closed
18 April 2011
Shares in London-listed online betting companies surged after some big poker sites in the US were shut for supposed prohibited activity.
At the close of trading, Bwin were up 30% and 888 up 15% as financiers speculated that the US closures would increase their operations.
On Friday, 11 individuals connected to three significant poker sites were charged with offenses, including fraud.
The US probe includes 3 websites: Full Tilt, PokerStars, and Absolute Poker.
Federal US authorities implicated the three online poker websites of manipulating banks to process billion of dollars in illegal profits.
According to Execution Noble analyst Geetanjali Sharma: "The closure of the primary rivals' operations and the US legal proceedings started against them should benefit European noted operators."
Playtech, another video gaming website, likewise saw its shares leap 11%.
'Criminal fraud plan'
Prosecutors in New York City on Friday said they had actually released limiting orders against more than 75 bank accounts in 14 countries used by the poker companies.
US Attorney Preet Bharara said the sites "cooked up an intricate criminal scams scheme, alternately fooling some US banks and effectively bribing others to ensure the ongoing flow of billions in illegal betting earnings".
The indictment said the 3 gambling websites did not follow the US Unlawful Internet Gambling Enforcement Act, developed in October 2006.
The law makes it prohibited for gambling services to accept most kinds of payment from people associated with illegal internet gaming.
The indictment sought $3bn (₤ 1.8 bn) in money laundering charges and forfeit from the sites.