by Anton Johan
Investors in Party Gaming, the Gibraltar based gambling group that
trades on the London Stock Market, are scanning the news for any advances in the
negotiations currently being held between Party Gaming and bwin.
The two gambling giants are discussing a merger that could very well change
the face of the online gambling world as we know it.
If the merger talks are successful, this massive new company could be worth
as much as £2 million.
Party Gaming shares dropped in 2006, following the company's decision to pull
out of the US gambling market after the introduction of the Unlawful Internet
Gambling Enforcement Act.
This year, Party Gaming reached a settlement with the Department of Justice
where it agreed to pay the government $105 million over a period of four years
as part of a "non prosecution agreement".
As part of the settlement deal, Party Gaming 'admitted' that prior to the
introduction of the UIGEA, it had targeted US citizens and offered them gambling
services that were "contrary to certain US laws".
Once Party Gaming reached an agreement with the United States, it removed a
cloud that had been hanging over its head for some time and was free to enter
new partnership deals - such as with bwin.
Party Gaming shares are expected to shoot up if a merger with bwin is
announced.
Party Gaming has been successful over recent years in bouncing back from the
shock that it received from having to leave the US market, with up to 90% of its
players at the time hailing from North America.
Bwin has seen a steady rise in profits following its successful expansion in
Europe, and the company is valued at £1.2 million on the Vienna stock market.
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