Gambling Company PartyGaming Talks with US DOJ : Update

Updating a story that broke at around 2 a.m. EST in the US, Internet gambling company PartyGaming Plc, owner of Party Poker and Party Casino, announced that they are currently talking with New York DoJ authorities in the United States .

Richard Carter, an analyst said in a statement later in the day that, "Although it is too early to assess the outcome of these discussions our intelligence tells us that there now appears a willingness on behalf of the U.S. Attorney's Office to settle and draw a line under the uncertainty caused by recent DoJ actions towards online gaming companies."

The talks between PartyGaming and US officials are about the company discussing a sort of compromise where the US DoJ would admit that the laws prior to the passing of the UIGEA were ambiguous and therefore they should not pursue more arrests against companies who willingly left the US market once the new law passed.

PartyGaming Plc, and other UK Internet gambling companies that left the market after the UIGEA, are in dire need of clarification as many of the companies are looking to consolidate with other companies, but won't because they are scared of prosecution. If the DoJ agrees with PartyGaming that the laws prior to UIGEA were ambiguous, it could spark a huge buyout trend that will see stocks in these companies skyrocketing.

Many land based UK companies are looking to buyout companies like Party Gaming so they will have an instant and large online presence.



2007-06-04