Shares in Party Gaming and 888.com took a knock on news that the Department of Justice authorities in the United States were seeking information on Internet gambling by issuing subpoenas on major financial and investment banks involved in IPOs for gambling companies on the London stock exchange.
The subpoenas, earlier reported by The Sunday Times of London, appeared to be part of an indirect but aggressive and far-reaching attack by federal prosecutors on the internet gambling industry just two weeks before one of its biggest days of the year, the Super Bowl. (some parts from infopowa)
The prosecutors’ efforts have already taken a toll in the last two years on offshore casinos, most notably with the arrest last year of David Carruthers, the chief executive of an internet sports book, BetonSports. Several weeks later Peter Dicks the chairman of Sportingbet, was arrested at Kennedy Airport. Last week, a British online money transfer business, Neteller, said it would cease handling gambling transactions from US customers because of regulatory uncertainty following the arrest of the two founders.
Even before that law, the Unlawful Internet Gambling Enforcement Act, was adopted, the US Government claimed internet gambling was illegal under a 1961 Wire Act provision, a claim that is contested by the industry.
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