UK based Bwin and 888 Holdings have seen their share prices soar today as the US authorities took action against rivals that had continued to operate in the US.

In a day where the FTSE 100 and other stock markets around the globe are more than 2% down on economic fears, Bwin is more than 34% up and 888 is up 24%. Investors expect that US action against rivals will boost revenues for those not involved. Playtech shares are up 11%.

On Friday, 11 people linked to three major poker sites were charged with offences, including fraud. The U.S. Justice Department seized the domains of PokerStars, Full Tilt, Absolute Poker and Ultimate poker forcing all 4 of the sites to switch to .eu domains. Within hours of the domains being seized PokerStars and Full Tilt stated that they would no longer accept US players at their real money tables.

Those involved have been charged with bank fraud and money laundering offences. The US government is also in the process of freezing all bank accounts used by the 4 poker companies.

According to Execution Noble analyst Geetanjali Sharma: "The closure of the main competitors' operations and the US legal proceedings initiated against them should benefit European listed operators."

Ironically, Washington DC has implemented new legislation that will allow it to introduce legalised online gambling and it is expected that the majority of other states will follow suit unless the US government reviews its own laws first. Online bingo in America will no doubt be as popular as it is in the UK within 18 months.