Online Poker Sites Stock PlummetCrash Caused by Congress Sneak Attach on Online Gambling |
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Today was Black Monday for publicly traded online poker sites thanks to the backdoor move performed by proponents of a bill designed to stop online gambling in the United States. The politicians consider poker a form of gambling.
Congress passed an act to improve port security, but Senate Majority Leader Bill Frist helped get a rider into it that would try to stop financial transactions between American financial institution and online gambling sites. The act was overwhelmingly passed.
PartyGaming, which announced it will stop doing business with Americans if the President signs the bill into a law, lost almost 60 percent of its stock value. Prices fell from 107 pence to 45 pence today.
888 Holdings made nearly the same announcement as PartyGaming today, and its shares fell from 146.5 pence to 108.25.
Sportingbet, the company that owns Paradise Poker, saw its shares fall from 174.25 pence to 66.
NETeller, the third-party banking company that allows people to transfer money online, saw its shares fall from 345 pence to 140 pence. The bill is designed to target financial institutions that work with online gambling companies, something NETeller does.
The company does business with more than 3,500 online companies and processed $7.3 billion in 2005. In a company statement, NETeller said it needs more time to determine what kind of action to take in light of this new development.
To read about the bill, click here and and what it means to players, here.
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