888 and Bwin shares skyrocket as US betting rivals closed

18 April 2011

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

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

On Friday, 11 individuals linked to 3 significant poker sites were charged with offenses, consisting of scams.

The US probe includes 3 sites: Full Tilt, PokerStars, and Absolute Poker.

Federal US authorities implicated the 3 online poker sites of controling banks to process billion of dollars in prohibited earnings.

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

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

'Criminal fraud scheme'

Prosecutors in New York City on Friday stated they had actually released restraining orders against more than 75 bank accounts in 14 nations used by the poker companies.

US Attorney Preet Bharara stated the sites "concocted a sophisticated criminal scams plan, alternately tricking some US banks and efficiently paying off others to assure the ongoing flow of billions in prohibited gaming revenues".

The indictment stated the three betting sites did not abide by the US Unlawful Internet Gambling Enforcement Act, established in October 2006.

The law makes it unlawful for gambling organizations to accept most types of payment from people involved in unlawful web gambling.

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

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

PokerStars posted a declaration to its gamers on Saturday, stating it had to suspend real cash play for clients based in the US.

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

"For all customers outside the US, it is business as usual."

A message published on the PokerStars.com site by the FBI stated the company had actually seized the domain name in connection with the investigation.

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