Online Casino Company Demoted in FTSE
The collapse of shares in the online casino sector that followed the introduction of a US bill to prevent internet gamblers from betting at the onlne casinos, together with the demerger of Experian from GUS, has prompted a series of changes in the FTSE 100 and other indices. One of the compamies most affected by the bill is the online casino company PartyGaming.
The online casino company is said to lose its place in the FTSE 100 index following the serious decline in its shares and tomorrow will be its last day there as a member, after which it will be relegated to the FTSE 250 index. PartyGaming was the only online casino company to enter Britain’s 100 biggest companies little more than a year ago, as its shares surged on the back of huge growth in the online gambling market.
Many companies in the online casino sector are suffering from the bill and have been forced to issue a series of profit warnings on October 2nd, after the US Congress passed the Safe Port Act which when signed by the president will make it illegal for banks and credit card companies to approve payments for online gambling sites. PartyGaming shares crashed that day from 108.5p each to 40.25p, the 60% plus decline leaving it with a stock market value of £1.6 billion and making its disappearance from the FTSE 100 inevitable. This morning the shares rose 0.125p to 41.625p.