Party Gaming US deal around the corner? At what price
Party Gaming (PRTY) might be getting closer to the elusive US deal with regulators.
Even reading the article depresses me. PRTY should not even be in this position. Neteller's "deal" cost the many many millions of pounds ($136 million) and for what? All the get is the promise of no future prosecution. So what about these other "private" companies - when do they get fined and imprisoned? You can bet none of the executives will be going to Disneyland any time soon.
Any deal would cost PRTY dearly and what would them get in return? How can Poker Stars and Full Tilt become two of the largest poker rooms in the world by taking US players whilst PRTY have to sit on the sidelines.
The only other benefit is that PRTY will be able to enter the US IF there is future regulation. This could be years by which point pokerstars could be the only game in town - the price? Many millions.
Worth paying....... a tough one but probably.
PARTY GAMING DEAL WITH U.S. AUTHORITIES IN SIGHT?
CEO confident of a resolution before end of 2008
London-listed online gambling group Party Gaming plc could achieve a settlement of its U.S. position with Department of Justice officials before the year is out, Chief Executive Officer Mitch Garber told business reporters this week. Garber, who leaves Party Gaming on 1st May 2009, said his departure would not impact such a settlement.
The company, which exited the United States market following the enactment of the Unlawful Internet Gambling Enforcement Act in late 2006, has been in negotiations with the U.S. authorities for some months, apparently seeking a settlement on its pre-UIGEA activities which would obviate any risk of retrospective prosecution. Such a settlement would considerably strengthen the company by removing uncertainties flowing from the American legal situation.
According to AFX News, Forbes and other media reportage, Garber told reporters that discussions on the issue were progressing in a constructive manner, generating confidence that a resolution could be reached this (2008) year.
"It's very hard to predict. There's some fluidity to it. We're in the midst of a process and our attorneys tell us it is moving in the right direction and at the right speed," Garber said.
The reports recall the Neteller plc case, where the Isle of Man-based e-cash processor paid a $136 million settlement to avoid further prosecution arising from its involvement in U.S. online gambling transactions pre-UIGEA, and recalls that Gibraltar-based gambling group 888.com has also reportedly initiated talks with the US authorities.
The lack of a level playing field is frustrating for shareholders of EU based companies.
