Gambling stocks took another hit today after news came to light over the weekend about the U.S. Department of Justice issuing subpoenas to international banks for information in their online gambling probe.
PartyGaming, Plc., which owns PartyPoker.com, saw its shares slip 6.5 pence to 28.75 pence today. Also feeling the pinch was 888 Holdings, owner of Pacific Poker, whose stocks fell 1.6% to 118.25 pence.
Other online gambling firms such as Leisure & Gaming and Sportingbet also saw shares fall.
The dip puts the stocks even further from their once-robust state before the United States passed the Unlawful Internet Gambling Enforcement Act (UIGEA) in an effort to hinder the online gambling industry in the country.
Since the UIGEA was passed, the industry's stocks have continued to drop with the news of arrests of BetonSports, Plc. execs for illegal online gambling, and more recently, the arrests of NETeller's founders.
The U.K. Sunday Times Online reported over the weekend that the U.S. Department of Justice issued subpoenas to 16 international investment banks over the last three months, demanding documents connected with online gambling firms.
Some investors in some of the most popular online gambling sites such as PartyGaming and 888 Holdings have also been asked for information.
The information being sought is part of the U.S. government's ongoing investigations to build cases against companies profiting from online gambling by U.S. customers.
Banks Asked to Hand Over Internet Gaming Documents
Brace Yourselves for Neteller Implications
Alternatives for Online Poker Withdrawals, Deposits
Citadel Also Stops U.S. Gambling Transactions
NETeller Ceases U.S. Online Gambling Transactions
NETeller Founder Granted $5 Million Bail
NETeller Founders Arrested in United States