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Online Casino Stock
Plummets
Sept. 8-06
The online casino market plummeted
yesterday. Apparently stock in internet gaming has suffered a
great blow due to the scandal surrounding the medium. Another
arrest was made yesterday, but this time the ever troubled
BetonSports online casino site was not involved.
Peter Dicks, the chairman of the
British company Sportingbet PLC, was arrested yesterday. As a
result of Dicks being brought in to custody there was $1.5 billion
depreciation in the online casino business. This is a heavy blow
to the already waning industry. Litigation surrounding online
gambling has translated in to decreasing stock value for the past
three months.
The chairman of Sportingbet was
arrested in New York for gambling on the computer. This arrest
seems to be more of a statement suggesting zero tolerance by
lawmakers where the online casino industry is concerned. Although
the senate has not made a decision as to whether or not the
gambling sites online violate the law, the current attitude seems
to be that any activity related to the medium must be hindered
until a clear decision is made.
The risk that owners of such online
companies are taking by continuing to conduct business in the US,
could land them in jail. It is doubtful that the operators of
online casinos are even aware of the dangers they face in running
such a business.
Other casinos that operate on the
electronic medium are experiencing the negative effects being
caused by US litigation procedures. The PartyGaming company, for
example, has undergone a 19% decrease in their stock shares over
seas in the London market. Playtech and 888 Holdings PC have
experienced similar decreases.
The online gambling that is getting
the most negative attention seems to be any site that deals with
sports betting as a platform. Internet operators are wondering
will this negative attention spread to online slot-machines or
poker. Certainly the web hosts of such sites cannot assume that
they are safe given the rough caused by recent arrests.
-Current
Online Casino News-
-September
News-
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