UK Online Gambling Shares Take A Beating After US Probe Announced

22 January 2007

Newspaper

SCOTSMAN.COM
By Pete Harrison

EXCERPTS:
LONDON (Reuters) – Shares in European online gaming firms tumbled by as much as 9 percent on Monday following news U.S. prosecutors had launched a probe into Internet gambling.

Analysts said U.S. prosecutors were now probably trying to target founders and senior executives of Internet gambling companies, just as they did with the arrests of two NETeller founders last week.

“They’re trying to make the founders sweat, as well as current management,” said analyst Tejinder Randhawa at Evolution Securities.

Lawyer Clive Gringras, head of Olswang’s e-commerce unit, said the move would probably have a “chilling effect” on the industry amid fears other countries would follow the U.S. lead.

“The only way an Internet company could really avoid risk and uncertainty would be to stop doing international business,” he said.

“They seem to be on a mission,” said Evolution’s Randhawa.

“Extradition requests are unlikely, but they’re not impossible, given what happened to the NatWest Three,” he added, referring to three UK bankers extradited to the U.S. on charges linked to collapsed energy giant Enron.

“I would have thought the DoJ would have been more reticent, given that the legislation was ambiguous at best,” said Olswang’s Gringras.

MORE – READ THE COMPLETE ARTICLE IN CONTEXT AT SCOTSMAN.COM

Related News

  • 08 October 2006

    Regulate gambling or lose the income

    THE NATIONAL POST Online betting is a grey area of law with huge profits Diane Francis, Financial Post Published: Saturday, October 07, 2006 The world’s largest computer facilities for online gaming are located in Canada and are nicknamed MIT. This doesn’t stand for the Massachusetts Institute of Technology: It stands for the Mohawk Institute of Technology.

    Read full article
  • 15 October 2006

    ONLINE GAMBLING SITES CONTINUE TO ADVERTISE IN SPITE OF CRACKDOWN

    NEWSDAY.COM By DAVID B. CARUSO Associated Press Writer October 14, 2006, 5:20 PM EDT NEW YORK — Despite repeated warnings from law enforcement officials, offshore Internet gambling companies have continued to advertise heavily in the United States. Giant billboards in Manhattan, some several stories high, brazenly advertise Internet gambling sites like Sportsbook.com, now based in Antigua.

    Read full article
  • 26 October 2006

    CONGRESS ACTS TO REMOVE GAMBLING OFFLINE. WHY?

    LUDWIG VON MISES INSTITUTE By Mark Thornton Posted on 10/26/2006 Congress purported to act to protect the values of the American people when it passed the “Unlawful Internet Gambling Enforcement Act.” The result has been a serious blow to a growing industry. Whose values was Congress protecting? It had nothing to do with the American people at large. Congress was protecting the “values” of casino owners and those who work in the state lottery racket.

    Read full article