Wall Street bets on Web gambling

Iria · Dec 25, 2005, 05:06 PM

Internet casinos are outlaw operations in the eyes of the federal government, but they look like solid investments to many of Wall Street's largest firms.

Blue-chip investment houses like Goldman Sachs, Merrill Lynch and Fidelity now hold hundreds of millions of dollars in shares of online casinos and betting parlors, which are publicly traded on the London Stock Exchange and headquartered in places like Costa Rica or Gibraltar.

The growing participation by American investors underscores a striking gap between the federal law-enforcement position on online gambling and the realities behind what has emerged as a booming business.

It also highlights the difficulty of policing cross-border activity in the Internet age at the same time that electronic commerce and a global economy are creating fast economic partners across national boundaries.
______________
Read More / Source: News.com

Dec 25, 2005, 05:06 PM	#1
Iria DriverHeaven Extreme Member Join Date: Apr 2004 Posts: 7,275 Rep Power: 74	Wall Street bets on Web gambling Internet casinos are outlaw operations in the eyes of the federal government, but they look like solid investments to many of Wall Street's largest firms. Blue-chip investment houses like Goldman Sachs, Merrill Lynch and Fidelity now hold hundreds of millions of dollars in shares of online casinos and betting parlors, which are publicly traded on the London Stock Exchange and headquartered in places like Costa Rica or Gibraltar. The growing participation by American investors underscores a striking gap between the federal law-enforcement position on online gambling and the realities behind what has emerged as a booming business. It also highlights the difficulty of policing cross-border activity in the Internet age at the same time that electronic commerce and a global economy are creating fast economic partners across national boundaries. ______________ Read More / Source: News.com