PartyGaming in online gambling talks with US
Online gambling company, PartyGaming, has begun talks with the US Attorney’s Office in an attempt to elucidate the company’s position in the wake of the Unlawful Internet Gambling Enforcement Act, which was passed last year.
The legislation effectively banned internet gambling in the US and brought with it a spate of arrests, including those of David Carruthers of BetOnSports and Peter Dicks of SportingBet who the US deemed were guilty of fraud and racketeering.
PartyGaming, who run Party Poker and party Casino, immediately withdrew from the US market and took an exceptional charge of $250 million in the process. The Gibraltar-based company are now seeking to clarify their position in the market in relation to the US’s legislation and even initiated the talks and was "voluntarily responding to a request for information".
The company released a statement today declaring “that online gaming should be offered by regulated, reputable operators and that this remains the right approach to this industry sector."
However, according to PartyGaming “it is too early to assess the likelihood of any particular outcome of these discussions."
The US stance against internet gambling has left a cloud of uncertainty over the industry and is said to have halted any potential merger and acquisition activity, such as Ladbrokes’ would-be takeover of the online gambling operator 888 Holdings.
Editor, Jackpot.co.uk - 2007-06-04 10:55:47