A demand from the US Department of Justice for financial institutions in the UK and other European countries to hand over data connected with online gambling has hit shares in betting firms today.

Shares in the world’s biggest online gaming group, PartyGaming, fell 9.8%, Sportingbet shares dropped by 3.4% and 888.com’s share price fell by 3.5%. 

It seems that US investigators are attempting to build a case against the founders and senior management of internet gambling companies, as indicated by the arrests of Neteller founders Stephen Lawrence and John Lefebvre last week.

Until last October’s anti-gambling legislation was sneaked through Congress, online gambling companies had been taking money from US gamblers while arguing that no US laws covered their trade.

UK gambling firms have already taken a huge hit in terms of lost revenue from the  laws, and now it seems they face further problems.

Graham Charlton

Published 22 January, 2007 by Graham Charlton

Graham Charlton is the former Editor-in-Chief at Econsultancy. Follow him on Twitter or connect via Linkedin or Google+

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