Canadian Online Casino Companies React to US Gambling Situation
| Roulette News > News Archive > 2006 > July > Canadian Online Casino Companies React to US Gambling Situation | |
| While Canadians pride themselves for being a totally separate entity to the United States, even though they share a continent, the truth is that sometimes nothing can stop certain influences from creeping over the border. Such is the case of the U.S. online casino industry. News of a possible national banning of all online casino activity caused the Canadian market to panic and this was clearly shown in the sharp drop in share prices of Canadian online casino businesses. Online casino giant, Crypto Logic that trades on the Toronto Stock Exchange, reported a near 15% drop in share prices. The online casino company's shares dropped $3.66 in value to $21.22. Another company, Fun Technology Inc. showed a drop of 3.7%. News that BetonSports CEO, David Carruthers was arrested last week by the FBI in connection with online casino activities also did not contribute to the stability of the Canadian gambling market. Investors were definitely panicky about putting their money on an industry that seems to be witch-hunted by US authorities. The question remains whether the arrest of Carruthers was targeted against one individual or whether the USA was specifically clamping down on online casino activities as a whole. Canadians are fearful that a national US ban would eventually also affect their own homegrown online casino market, which explains the unsettled gambling market. | |
