• ONLINE GAMBLING STOCKS DIVE - AGAIN - AS US DOJ HOLDS GAMING EXECUTIVE - AGAIN.

    07 September 2006

    Newspaper

    REUTERS UK
    Thu Sep 7, 2006 2:05 PM BST162
    By Pete Harrison

    LONDON (Reuters) – The United States detained a second Internet gaming executive on Thursday, adding to fears it is cracking down on the lucrative industry and sparking share price falls that wiped over $1.5 billion (800 million pounds) off the market value of the sector.

    Online bookmaker Sportingbet said its chairman, Peter Dicks, had been detained by U.S. authorities — a move that mirrored the detention in July of another online gaming CEO on racketeering charges.

    Shares reacted instantly across the $12 billion-a-year industry, with industry leader PartyGaming plunging as much as 19 percent, 888 Holdings down as much as 18 percent and Playtech down as much as 17 percent.

    Shares in Austria’s bwin.com Interactive Entertainment also slumped.

    “This arrest highlights the U.S. Department of Justice is going after online gaming companies by arresting their board members,” said a London analyst who declined to be named.

    Sportingbet said it had sought immediate temporary suspension of its shares pending clarification of the situation. Dicks was arrested at 0100 GMT on Thursday and his hearing is scheduled for 2 p.m. British time, it added without giving a location.

    Analysts said Sportingbet’s U.S.-focused sports betting business was similar to that of BETonSPORTS, whose CEO David Carruthers was arrested in Texas in July.

    Carruthers and seven others pleaded not guilty to racketeering and other charges. The Costa Rica-based company has since said it is closing its U.S. business.

    READ THE COMPLETE ARTICLE AT REUTERS UK

    Related News

    • 18 September 2020

      Lucky Tiger Casino Unleashed Upon Adoring iGaming Crowds

      There is a brand-new online casino on the horizon, and it’s one that is ready to pounce and pack a punch: Lucky Tiger is the name and it’s all business! Gamified quests, generous winning potential and much more makes this online gambling establishment a place to look out for in the final quarter of 2020! A Bit About Lucky Tiger Let’s first take a look at Lucky Tiger’s origins.

      Read full article
    • 09 September 2020

      Greentube Strengthening Position in Spain By Partnering up with Gran Madrid Online

      Greentube already has a significant influence in the Spanish market. Now it is extending its footprint in this country by partnering up with leading operator Casino Gran Madrid Online. The distribution deal will see the provider’s classic and tailored iGaming content implemented into the offering of the operator, enabling the brand to expand its presence on the Iberian Peninsula.

      Read full article
    • 15 August 2020

      Funbet Casino Brings the Fun to Both Casino Players and Sports Bettors!

      It seems like new online gaming platforms are popping up left and right, but not all of them have what it takes to attract the market’s attention. That certainly isn’t the case with Funbet Casino, with a lot of interesting things in its offer. As a platform that doesn’t only look out for the casino players, but also sports bettors, it has a strong portfolio of entertainment choices to show for.

      Read full article