The Unlawful Internet Gambling Enforcement Act that is expected to be signed by President Bush, will practically finish off all online gambling sites by making it illegal for any bank ceme, credit card company or online payment system to process any payments being made to online gambling companies.
Surprised at the passing of this new debilitating law, the leaders in the online gambling industry took drastic measures and started to trade off stock on the London Stock exchange which erased $8 billion from the industry. PartyGaming, the world’s biggest online gambling site said that they would cease their ties with the 920, 000 active US customers they currently have only when Bush actually signs the new act.
Although the new law hasn’t yet been signed, the industry is already being drastically affected. PartyGaming’s stocks alone have dropped 60% ending up at a measly. 81 cents a share. Other sites like SportingBet and 888 Holding were also affected by the change and have since lost a lot of money on their shares. 888 Holding, for example, had a 48% decrease on their shares dropping them down to $1. 42 on the British Market and announced that it was going to no longer continue its online gambling business in the united states.
This isn’t the first Act, however, that has given the federal government power to break down the online gambling industry. Under the 1961 Wire Act, the federal government has the right to brake down online betting in sports, poker and other casino games that are considered to be illegal under the law.
This is seriously debilitating the industries economy because the US consumer market is responsible for 50-60% of the online gambling revenue. These critical laws against the online gambling site owners are forcing companies to shut down or move out but what’s clear is that they are no longer welcome in the united states.
The Madam Chairman of the Interactive Gaming Council, Sue Schneider, has predicted that over 500 companies running around 2, 300 online gambling sites around the world will be facing extinction and will most likely be wiped out of the industry all together. The small number of companies that manage to live through this incredible crisis will have to live with a huge cut back on their revenue and figure out new ways of growing again. The idea of opening up in the Asian market has become a favored idea for many.
The gambling business has always been a big business with high turnover of millions of money involved. In the united kingdom, the annual turnover, or the amount wagered, on gambling activities is estimated to be in the region of 42 billion. Base on research, in 1998, the expenditure was around 7. 3 billion.
At present, online gambling addiction has become a very common problem for many people of different ages. The presence of over 1700 gambling websites on the internet, through interactive television and mobile phones, have caused a significant increase in online gambling addictions. In other words, the convenience of gambling at home and the ease of setting up a gambling account, have given online gambling an extremely seductive and attractive nature.
Generally, gambling habits that begins as a recreation will eventually turn into a harmful gambling addiction. Gambling can be for leisure and entertainment, however, where money is involved, greed will be formed. And addiction often derived from the root of greed.
Online Gambling addiction is widely common in the world today. Many has tried but failed in quitting the addiction. It has been made so easy to access into the Internet today that convenience has made quitting extremely difficult for gamblers. Self help books aren’t great quitting tools as well because they take a one-size-fits-all approach and words on a page aren’t taking you anywhere. One of the effective approaches is by prohibiting the ease of access to gambling online. It can be done by installing an effective web filter, so that you can block out betting websites from your computer. Apart from this method, there is a new method through audio programs. This allows user to quit gambling progressively and it has been proven effective through tests.
One of the effective approaches is by prohibiting the ease of access to gambling online. It can be done by installing an effective web filter, so that you can block out betting websites from your computer. Apart from this method, there is a new method through audio programs. This allows user to quit gambling progressively and it has been proven effective through tests.
Several new studies show that college students are flocking to online gambling websites in record numbers. The studies show a 12% increase in college students that participate in online gambling from two years ago. The unlawful Internet gambling enforcement act (UIGEA) was passed and became law in October 2006 by the government to curb the online gambling. But the UIGEA not deterred online gambling, but in fact has actually increased the internet gambling activity.
The us is considered the top Internet gambling market in the world and now high school and college age students ages 14 to 22 are getting into the act. One of the studies was conducted by the Annenberg adolescent communication Institute at the University of Pennsylvania. This telephone study found that in college aged males 16% admitted to gambling online that figure is up from 4. 4% in 2008. High school students who gamble online on a monthly basis were up from 2. 7% to 6. 2%. Of the participants virtually none admitted to weekly online gambling.
Online poker players have been lobbying the us Congress to repeal the current UIGEA law. The new bill passed the house Financial Services Committee, but doesn’t look like it will be voted on by the full house before the end of the year. With no vote this year a new bill have to be introduced in 2011. The idea of regulating online casinos and poker rooms has many politicians including it in their campaigns. Hoping that this will help many states increase tax revenue and help balance the state’s budget.