surges after Full Tilt has its trading licence suspended

Steve Dinneen
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SHARES in online gaming firm surged yesterday after key rival Full Tilt had its licence suspended.

A US investigation into the firm’s founders led the gambling commission of the Channel Island of Alderney to order the firm to stop trading with immediate effect while it conducts its own investigation.

Full Tilt was indicted in the US for alleged gambling offences, money laundering and bank fraud.

In a research note, UBS analyst Simon Whittington says the news is positive for remaining European poker operators.

He said: “We estimate that Full Tilt has a 10-15 per cent share of the non-US poker market. With a similar share themselves, we believe should be a prime beneficiary of any market ‘vacuum’ created.”

Austrian Bwin merged with rival PartyGaming earlier this year. The company is based in Gibraltar, a popular location for online gaming companies due to its relaxed tax laws and well-regulated gambling system. After their initial surge its shares fell back to close 1.2 per cent up last night.