Stocks Surge Following Hopes that Charges Will be Dropped Against NETeller

The gaming sector was in demand on Wednesday. 888 added 4p to 120p on talk that Ladbrokes was about to come out with its bid, although some traders doubted this, saying Ladbrokes had been distancing itself from a move on 888 recently.

Other tales to explain the buoyancy in the gaming world, according to the Guardian, included a suggestion that charges against the founders of online payment group Neteller, suspended at 176p, were about to be dropped in the US. Alternatively there were hopes the US would introduce a new bill to water down some of the more draconian anti-online gaming measures. There was even talk that Gordon Brown was planning tax breaks for the industry in next week's budget.

None of this could be confirmed but online gambling stocks rode the wave of speculation Wednesday.  The trend continued throughout.  PartyGaming put on 3.5p to 41.5p and Sportingbet 2.5p to 58.25p.

A hearing will be held Friday to determine whether the US government pursues its case against two NETeller co-founders.  Both men were charged in January with racketeering and money laundering. 

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Gambling911.com News Wire

Originally published March 14, 2007 9:41 am ET