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Casino News > Archive > 2007 > February

Shares in Online Casino Industry Drop after US Investigation The Casino Cashier at Amber Coast

1 Feb 2007

The shares of a few famous online casino groups fell recently following the news that the US Department of Justice is expanding its investigation into the online casino industry. The latest probe is insisting that information from some of the world’s largest investment banks as part of an inspection of several online casinos sites. This is the latest in the ongoing US attempt to stop the growth and operation of the online gambling industry.

The US Justice Department issued subpoenas to at least four investment banks. These banks had reportedly underwritten the initial public offerings of some of the most high-profile and famous online casino sites which conduct their operations overseas. While many online casino sites operate from a Gibraltar base, companies that conduct business with them and have large bases in the US have been dragged into this investigation by regulators in Washington.

Thanks to this latest action by the US Department of Justice, shares of these online casino groups have fallen. One of the most popular online casino group’s shares dropped by approximately 6.5 percent; a rival online casino was down by 6 percent. Yet another online gambling group was down about 3.5 percent this week. This is a hard hit for these online gambling firms – business has already taken a turn for the worse since the passing of the UIGEA, or Unlawful Internet Gambling Enforcement Act. For these companies, this investigation will hopefully turn up fruitless. If not, the online casino industry could see another drastic change.

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