Kings Of Vegas

US Online Gambling Set For Collapse

October 1st, 2006

Now that the Internet Gambling Ban has been approved and will likely be signed into law within the next two weeks, many London-based online casinos are already starting to shut down US-focused operations.

From the TimesOnline.co.uk:

AMERICA’s $6 billion (£3.2 billion) internet gambling industry is facing meltdown after the US Senate pushed through a Bill at the weekend outlawing the processing of bets by banks and credit companies.

The surprise move, which is expected to spark a massive share sell-off, will prompt London-listed 888 Holdings to announce this morning that it is halting its entire US-facing operation, accounting for half its business.

PartyGaming, the world’s biggest internet gambling company, said last night that it was “still evaluating the situation”, although industry sources believe it will also announce a cessation of its services to American punters.

While I initially thought that there would be enough loopholes to get around the account financing issues, I’m not as optimistic at this time.

I think the implications of this bill will only drive gambling back into an underground industry. Local bookies, welcome back.

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