Louisiana issues warnings to online gambling sites
Louisiana police have sent out a warning to all online gaming companies that if they accept bets from their state they are risking arrest and prosecution should they ever visit the US.
Four warrants - including one for the recently arrested Peter Dicks - had already been issued for associates of the popular internet firm Sportingbet. Apparently other gambling groups are also under investigation and have warrants out for their associates as well. The Ritz Club Online have decided to close their site to new customers and released a statement earlier this week saying that in light of the current confusion and inconsistency in online gaming legislation, the site will be closed to new clients effective immediately.
Overall shares in the online sector have tumbled in recent months as the aftershock from the David Carruthers arrest still resonates. Since then in addition to the Dicks arrest, the two founders of BWIN were rounded up by French authorities and told they were in violation of European gambling laws.
Meanwhile Empire Online, another UK listed site, has taken advantage of the market downturn by making acquisitions while the company values were low. After raking in a profit of $250 million from its sale of its poker division, Empire plans on reinvesting the money, albeit cautiously. With Empire shares closing at almost six percent higher at 64p, the value of the company has soared to over $350 million.
-Danny Davis