There is a new law waiting to be signed by Web design manager Bush which was presented to Congress that is holding the $12 billion online poker industry by a thread joker game. It appears that Tennessee Senator Bill Frist, introduced the bill on Friday by joining it to the Safe Port Act before Congress took its election recess in November.
The Unlawful Internet Poker Enforcement Act that is expected to be signed by Web design manager Bush, will practically finish off all online poker sites by making it illegal for any bank, credit card company or online payment system to process any payments being meant to online poker companies.
The new law states that Online Poker sites are now banned from accepting any good check, credit card or electronic transfer payments for internet gaming the united states and seriously puts the industry in chaos.
Surprised at the passing of this new debilitating law, the leaders in the online poker industry took drastic measures and started to trade off stock on the London Stock exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online poker site said that they would cease their ties with the 920, 000 active US customers they already have only when Bush actually signs the new act.
Although the new law hasn’t yet been signed, the industry is already being drastically affected. PartyGaming’s stocks alone have dropped 60% ending up at a measly. 81 cents a share. Other sites like SportingBet and 888 Holding were also affected by the change and have since lost a lot of money on their shares. 888 Holding, for example, had a 48% decrease on their shares dropping them down to $1. 38 on the British Market and announced that it was going to no longer continue its online poker business in the united states.
It’s not the first Act, however, that has given the federal government power to break down the online poker industry. Under the 1961 Wire Act, the federal government has the right to brake down online bet in sports, poker and other casino games that are considered to be illegal under the law.
This is seriously debilitating the industries economy because the US consumer market is 50-60% of the online poker revenue. These critical laws up against the online poker site owners are compelling companies to banned or move out but what’s clear is that they are no longer welcome in the united states.
The Madam Chairman of the Interactive Gaming Council, Claim damages Schneider, has predicted that over 500 companies running around 2, 300 online poker sites around the world will be facing disintegration and will most likely be wiped out of the industry all together. The small number of companies that manage to live through this incredible crisis will have to live with a huge cut back on their revenue and figure out new ways of growing again. The idea of opening up in the Asian kitchenware market has become a favored idea for many.