Online Casinos Share Dives Causing Damage to Fidelity
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| | | Online Casinos Share Dives Causing Damage to Fidelity | 5 Oct 2006 Fidelity, a fund management company, endured a major blow due to the fall-out from the efforts by the US to shut down online casinos gambling in the country. According to reports, Fidelity funds are nursing a massive paper loss on their seven percent stake in Party Gaming, the world’s largest online casinos poker site. The online casinos company looks as if it is set to scrap its dividend and drop out of the FTSE 100 index next week.
Funds run by Fidelity have seen the value of their holdings in three of the main online casinos groups collapse by about GBP 270 million (Euro 400.8 million) in the past two days of falling share prices regarding the online casinos industry. All across the board the online casinos market is taking blow after blow, with the arrests of chief executives as well as the recent legislation that was passed by the US Congress last week to ban online gambling.
The future of the online casinos industry, with the current track it is finding itself taking, is unknown. Many online casinos industry executives are becoming concerned over the outcomes of all of these events, and fear the future more than ever before. Because online gambling is so popular, and so many people enjoy it – whether they bet on horses or on chips – it will always be a target for those countries and governments who wish to see the pastime and activity eradicated from the world. It seems that the online casino industry will be at a constant battle with the governments of the world as long as it exists.
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