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Casinos> 2007
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Party Gaming An Attractive Proposition For Amercian
Giants?
Speculation mounts on the possible reasons for Party
Gaming's US talks
Speculation in UK business circles is mounting following last week's
disclosure by the London-listed online gambling group Party Gaming
that it was involved in discussions with US authorities over its
legal position in that country.
Party pulled out of the US market, losing a large chunk of its
revenues on the passage of the Unlawful Internet Gambling Enforcement
Act last October, and over the past month has reportedly been exploring
its legal position regarding US operations prior to the introduction
of the UIGEA, which prohibits online gambling financial transactions.
Business analysts have theorised that if Party manages to absolve
itself of illegality prior to the UIGEA, it would substantially
enhance its M&A desirability as a target for major American
gambling companies looking to enter the online gambling industry.
Typical of the speculation was this week's buy note from Deutsche
Bank, which pointed out that Party Gaming constituted an "easily
palatable bolt-on" given current share pricing, and assuming
a green light was negotiated with the US Department of Justice.
Giant US gambling groups Las Vegas Sands or MGM, or even non-gambling
Internet mammoths like Google or Yahoo! could find the possibilities
attractive, several industry observers have noted.
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