Companies

PartyGaming in talks with US authorities

PartyGaming, the online poker company, has announced it is in talks with US authorities over the country’s crackdown on internet gambling. The US has already arrested several internet gaming executives, and PartyGaming has ceased taking bets from US customers.

PartyGaming said it had initiated discussions with the US attorney for the southern district of New York and was voluntarily responding to a request for information. However, the company added it is too early to assess the likely outcome of these discussions.

Lombard in the Financial Times (5 June) described PartyGaming’s statement as a welcome sign the company is trying to draw a line under its US adventure.

However, Lombard added, prospects that the US will be reopened to online gambling have been overstated: if there is a US opportunity, argued Lombard, it is the uncertain prospect that a large US casino company will select PartyGaming as a bridgehead for international expansion.

July 2007