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Online Gambling Companies Merge to Find Markets Elsewhere

With the current legislation waiting to be passed in congress, online gambling companies are looking for other ways to boost their business if the new U.S. laws are passed.

European online gambling companies are quickly searching for new opportunities and business ventures to increase the volume of business in Europe and Asia and decrease their exposure in the United States.

This turn around follow the arrest and indictment of online gambling executive David Carruthers last month as he was on a layover in Dallas Fort Worth airport.

Online gambling experts believe that the current climate concerning online gambling in the U.S. will see a trend of companies consolidating, especially major companies joining forces with other gaming companies who are not exposed to U.S. markets.

Online gambling companies are preparing themselves for the worst case scenario - that is the anti online gaming legislation will be passed. The U.S. market makes up for more than half of the entire $12 billion online gaming revenue.

The stock market is also bracing itself for the worst. After the arrest of Mr Carruthers, some rival online gambling companies saw drops of up to 20% of their company shares, also many advertising companies were pressurized by the government to drop online gaming advertising campaigns.

Online gambling companies are now shifting their focus to the largely untapped Asian market. Japan is one of the biggest users of internet gambling sites and their banking systems are among the most advanced in the world but the number of users doesn't compare to the American market. China has huge potential because of the enormous population, although some laws in China prohibit internet service providers from allowing some online gambling sites to operate. This heavy arm of the law is a major obstacle to overcome.

Asian gaming revenue totalled $2.1 billion last year, which is a fairly sizeable amount but still only accounts for one third of the American market.

Because of these obstacles, the development of the European market is beginning to look like a more viable option. Many European companies with a strong European presence are likely to be merged with other online gambling companies in an effort to gain a strong presence in this market.

The U.K. has relaxed its gaming laws and is in the process of legalizing online gambling, in an effort to skim off tax revenues from these companies. Italy has taken a much firmer stance, the same as the United States, and is blocking any potential online gambling companies from operating there. This is in an effort to protect their state run casinos.

Whatever happens in the Senate, most online gambling companies are preparing themselves for the worst and are taking measures so that they may weather the storm. The potential of online gambling in the rest of the world holds much promise; it is just a matter of building and nurturing new markets. Most gaming companies consider this set back as "business as usual."



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