Rien ne va plus at the Internet casinos
After a real boom, virtual casino operators have run out of luck. The industry leader Partygaming also came crashing down this week. The reason: the new legislation in the USA.
After a real boom, virtual casino operators have run out of luck. The industry leader Partygaming also came crashing down this week. The reason: the new legislation in the USA.
Back in 2005, the online casino Partygaming, based in Gibraltar, went straight into the FTSE-100 index. Now it's game over, as online gambling was banned in the USA a week ago. As a result, the virtual casinos have lost four-fifths of their customers and turnover in one fell swoop. The share prices of Internet casinos have fallen accordingly. Those of Partygaming, for example, lost sixty percent of their value within a week, and dividends have been canceled for this year.
Although the legality of the business in the main US market has always been questionable, the decision by the US Congress came surprisingly quickly. However, Partygaming is not completely finished, but an abrupt change of course is necessary in terms of corporate strategy. From now on, the Internet casino will be hunting down weaker competitors and trying to lure European and Asian gamblers to the virtual gaming table. This will not be a walk in the park, as the Handelsblatt comments, as these are more difficult markets and the business is politically unpopular.
Back in 2005, the online casino Partygaming, based in Gibraltar, went straight into the FTSE-100 index. Now it's game over, as online gambling was banned in the USA a week ago. As a result, the virtual casinos have lost four-fifths of their customers and turnover in one fell swoop. The share prices of Internet casinos have fallen accordingly. Those of Partygaming, for example, lost sixty percent of their value within a week, and dividends have been canceled for this year.
Although the legality of the business in the main US market has always been questionable, the decision by the US Congress came surprisingly quickly. However, Partygaming is not completely finished, but an abrupt change of course is necessary in terms of corporate strategy. From now on, the Internet casino will be hunting down weaker competitors and trying to lure European and Asian gamblers to the virtual gaming table. This will not be a walk in the park, as the Handelsblatt comments, as these are more difficult markets and the business is politically unpopular.
