Online gambling group’s UIGEA talks linked to a US comeback
Friday 22nd June 2007
According to reports on gambling news site online-casinos.com the motives behind Partygaming’s recent talks with US authorities may be connected to a possible re-entrance of the casino giant into the American market.
The company had instigated talks to clarify the US government’s exact position on the Unlawful Internet Gambling Enforcement Act (UIGEA), an act that was passed in October 2006, prohibiting the transfer of funds from a financial institution to an Internet gambling site, and resulted in Partygaming’s withdrawal from the US and subsequent revenuelosses.
To clamber back from this weak position business analysts have speculated that if Partygaming succeeds in clearing itself of illegality prior to the UIGEA, it would significantly boost its M&A (mergers and acquisitions) appeal as a potential candidate for leading American gambling companies who want to make their first foray into the online gambling industry. Some of this speculation has come from sources such as Deutsche Bank, which highlighted the fact that Party Gaming signified an 'easily palatable bolt-on' given current share pricing, and assuming talks with US Department of Justice reach a positive conclusion.
According to reports on gambling news site online-casinos.com the motives behind Partygaming’s recent talks with US authorities may be connected to a possible re-entrance of the casino giant into the American market.