PartyGaming Will Avoid US Prosecution
Online gambling firm, PartyGaming, has clinched a deal with US authorities that would ensure it avoids prosecution according to the Guardian Newspaper on Tuesday.
Shares of PartyGaming were up 14 percent higher to 250p as a result of the positive news.
As part of the deal reached with US authorities, Party will pay $105m in half-yearly installments by September 2012.
Jim Ryan, chief executive, said the deal marked an "important day" for PartyGaming and that it had been a "long and complex process". "We are now well placed to seize organic as well as strategic opportunities that previously were beyond our reach," he added.
Many believe the online gaming sector is ripe for consolidation as mergers between operators could lead to substantial savings on operating and software costs.
City analysts welcomed the deal, with some saying the settlement was better than expected in terms of size and payment structure.
"The non-prosecution deal looks a good one for Party with the fee of $105m spread over four years being below our expectations ($150m)," said Nick Batram at KBC Peel Hunt. "Party can now put the US issues behind them and start the fight-back against the US-facing poker rooms via consolidation."
Christopher Costigan, Gambling911.com Publisher
