888 and Bwin shares soar as US betting rivals closed
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18 April 2011

Shares in London-listed online wagering companies surged after some huge poker sites in the US were shut for supposed illegal activity.

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

On Friday, 11 people linked to 3 major poker were charged with offenses, including scams.
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The US probe involves three websites: Full Tilt, PokerStars, and Absolute Poker.
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Federal US authorities implicated the three online poker sites 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 proceedings started versus them should benefit European listed operators."

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

'Criminal fraud plan'

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

US Attorney Preet Bharara said the websites "cooked up a sophisticated criminal fraud scheme, at the same time deceiving some US banks and successfully bribing others to ensure the continued flow of billions in illegal gambling profits".

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 internet betting.

The indictment sought $3bn (₤ 1.8 bn) in cash laundering penalties and forfeiture from the websites.
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The authorities stated Absolute Poker had said quickly after the law was enacted that the US Congress had no control over the business's payment transactions.
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PokerStars posted a statement to its gamers on Saturday, stating it needed to suspend real cash play for clients based in the US.

"Please be guaranteed player balances are safe. There is no cause for issue," the company stated.
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"For all clients outside the US, it is company as usual."
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A message posted on the PokerStars.com website by the FBI said the firm had actually seized the domain name in connection with the investigation.

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