|Shares in online gambling sites including PartyGaming and 888.com fell yesterday, following the news that the US Department of Justice is stepping up its investigation into the industry.|
The latest probe is demanding information from some of the world's biggest investment banks which reportedly include HSBC, Credit Suisse, Deutsche Bank and Dresdner Kleinwort as part of an inspection of several online gaming sites.
The Justice Department has reportedly issued subpoenas to at least four Wall Street investment banks that had underwritten the initial public offerings of some of the most high-profile online gambling sites that operate overseas.
While online gaming sites such as PartyGaming and 888 Holdings operate from a Gibraltar base and have floated on the London Stock Exchange, companies that conduct business with them and have large bases in the US have come under fire by regulators in Washington.
PartyGaming’s shares dropped by approximately 6.5 percent while rival Sportingbet was down by 6 percent and 888.com lost around 3.5 percent.