Mediocre Online Casino Proposal Not Good For Business
Barney Frank’s proposal for a regulatory authority to supervise the online casino industry was not what people were expecting. The online casino industry was hoping for a hero that will fight the Unlawful Internet Gambling Enforcement Act directly, but instead Frank has proposed a mediocre online casino bill that does not serve the industry’s interests. Frank’s bill is talking about a taxation plan that will make online casino firms cough up 1 percent of their monthly revenue and hand it over to the US government. This is hardly good for business.
Following Frank’s press conference, online casino stocks were the first to react with sharp value drops that represent the feel in the industry. The new bill was suppose to give a hope for everyone looking forward to conducting business with the online casino industry in America. Investors were looking for the possibility of the online casino industry returning to the United States in the near future, and Frank was their big hope. With the new proposal not really changing anything, and clearly does not live up to the hype, investors are re-thinking about doing business with the online casino industry – and shares’ value is dropping. Some firms lost about %2 in share value while other firms suffered dramatic loses of up to 12%. This shows how much impact those online casino legislation has on the market.
If there is no future, there will be no business. It’s quiet simple. If the online casino industry will not be able to operate in the United States, then firms in the US will not do business with online casino firms and shares will continue to drop. However, even the smallest chance of positive legislation taking place will boost the value of online casino firms and share value will rise. Another significant factor in share value is whether or not an online casino firm caters to the American public. Firms that do not offer online gambling to the United States and base their revenue flow on other markets were less affected by the legal storm in Washington.