Stocks Rally Following PartyGaming Settlement Deal
Following news that PartyGaming had settled with the US Government to avoid future prosecution, the online gambling sector, which lost significant market share since late 2006, began to rally on Tuesday. In October 2006, publicly traded European based online gambling firms were forced to exit the lucrative US marketplace following passage of the Unlawful Internet Gaming Enforcement Act.
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.
Rival firms benefited from the positive news.
Shares in PartyGaming were up 15.3 per cent p to 252½p pence by mid afternoon, leading the FTSE 250 risers, with rival 888 up 8 percent to 97.25 pence and Sportingbet rising 10 percent to 45.75 pence.
Jagajeet Chiba, Gambling911.com
