Online Gambling Companies Take Direct Hit, Stock Prices Plunge

22 January 2007

MARKET WATCH – DOW JONES
By Sarah Turner, MarketWatch
Last Update: 9:34 AM ET Jan 22, 2007

LONDON (MarketWatch) – Shares in online gambling companies PartyGaming, SportingBet, 888 Holdings and Empire Online slipped once more in London on Monday after published reports that the U.S. government has requested British banks hand over transaction details of their dealings in the online gambling sector.

PartyGaming (UK:PRTY: news, chart, profile) shares lost 7.3%, SportingBet (UK:SBT: news, chart, profile) shares dropped 7.4%, 888 Holdings (UK:888: news, chart, profile) lost 2.9% and Empire Online (UK:EOL: news, chart, profile) declined 1.7% in the London stock market.
PartyGaming shares hit a high of 179.5 pence in 2005 but were trading at just 28.25 pence on Monday, while SportingBet shares traded at a high of 452 pence last year. On Monday, SportingBet’s shares were valued at 34.5 pence…..

“It’s a regulatory sentiment issue,” said Andrew Lee, a leisure sector analyst at Dresdner Kleinwort. “People are trying to put a value on the risk of the U.S. trying to claw back some money and what impact it might have in terms of sentiment and share price.” He noted that so far, actions from the U.S. have been significantly more negative than expected by the market. The sector slumped in early October when the U.S. Congress unexpectedly passed legislation that will make it a criminal offence to receive funds related to any online gambling activity that is illegal under state or federal law.
Also, several online gambling senior executives and shareholders of these companies have been arrested in the U.S.

MORE – READ THE COMPLETE ARTICLE AT MARKET WATCH – DOW JONES

Related News

  • 14 May 2010

    Canadian Man Pleads Guilty in U.S. Online Gambling Charge

    Douglas Rennick, a Canadian man, has pleaded guilty to a count of processing offshore bets of U.S. citizens. Originally Rennick was looking at a charge of conspiracy and bank fraud. He had allegedly laundered $350 million dollars for overseas internet gambling companies. Rennick was indicted in August and on Tuesday entered a guilty plea to the one charge in New York Federal court. Part of the plea was forfeiting $17.1 million and a possible prison term of 6-12 months.

    Read full article
  • 02 June 2010

    France to Award 30 Licenses for Online Gambling

    Today the government of France approved a new online gambling bill. The bill passed the French parliament by a narrow 299-233 vote. The French will grant only 30 licenses to operate online casinos and poker rooms within its borders. Though it is now official and France says that licenses will be granted in time for the 2010 World Cup, not everyone is excited about the French market.

    Read full article
  • 09 June 2010

    France Issues 11 Licenses For Online Gambling

    France acknowledged that 11 companies have been granted license and have been registered to conduct online sports and horse race betting as well as online poker within France. According to Arjel president Jean-Francois Vilotte, the regulator of gaming in France, “There were 35 requests for licenses and we have retained 17 at this stage. None have been formally rejected.

    Read full article