Speculation On Dropped Charges For Neteller Founders Fuels Online Gaming Stock Rise

14 March 2007

Newspaper

UK online gambling stock rose earlier this month amid speculation that US Congressman Barney Frank was going to introduce legislation calling for a review of UIGEA. Now new gossip floating the current rise in UK gambling stock credits the speculation that charges against Lefebvre and Lawrence, Neteller founders arrested in February and held in the US are about to be dropped.

In GUARDIAN Unlimited’s Lunchtime Market Report for March 14th, Nick Fletcher stated “Elsewhere the gaming sector was in demand. 888 added 4p to 120p on talk that Ladbrokes was about to come out with its bid, although some traders doubted this, saying Ladbrokes had been distancing itself from a move on 888 recently.

Other tales to explain the buoyancy in the gaming world included a suggestion that charges against the founders of online payment group Neteller, suspended at 176p, were about to be dropped in the US. Alternatively there were hopes the US would introduce a new bill to water down some of the more draconian anti-online gaming measures. There was even talk that Gordon Brown was planning tax breaks for the industry in next week’s budget.

Whatever the reason, PartyGaming put on 3.5p to 41.5p and Sportingbet 2.5p to 58.25p.”