PartyGaming Shares Rise in Face of Buoyant News

PartyGaming shares were driven higher today following speculation from a number of brokers that a bill banning online gaming in the US would not be passed into law.

Right-wing interest groups have been pushing for a bill which will have the effect of largely prevented any online gaming in the United States for a number of years now, which would be bad news for thousands of online gaming sites such as PartyGaming, the parent company of PartyCasino and the world’s largest online poker room, PartyPoker. The United States provides the bulk (some analysts designated the US market as generated almost half of

32 Vegas

the total online gaming revenue) of the worldwide online gaming market, and success within the United States have seen PartyGaming become a $10 billion company in the space of only five years since launch. The proposed bill would make it illegal for banks and credit card companies to allow payments to online gaming sites.

PartyGaming shares took a nosedive recently when owners of the blue-chip company sold another 10% of their holdings. PartyGaming shareholders were then hit with a 24% loss in value after the US House of Representatives voted overwhelming to pass the gaming bill. Since then, however, shares have been rising steadily and received another boost yesterday when leading stockholders like ABN Amro repeatedly designated PartyGaming shares as a “buy” recommendation. ABN Amro predicted a 160p target for PartyGaming, arguing that the fundamentals of the company remain unchanged, despite the recent heavy share sales by PartyGaming directors. PartyGaming is trading today at 111p, which presents massive value for investors should the ABN Amro prediction prove correct.

Three days ago, the US House of Representatives passed the gaming bill by a majority of 317 to 93, but Morgan Stanley and other brokers believe its unlikely the bill will be ratified by the US Senate.

Despite this, Morgan Stanley was more cautious than ABN Amro with their prediction for PartyGaming – they stuck with their “overweight” designation for the online gaming giant.

PartyGaming is only one of hundreds or thousands of online gaming platforms which will be affected one way or the other by the proposed ban of internet gaming in the United States, but as the largest online gaming company in the world, their rising and falling share price will be a key indicator of whether the proposed bill looks likely to be successful or not.

PartyGaming spokesperson John Shephard said the company was monitoring the situation closely and was hopeful the US government would eventually follow the “sensible and pragmatic” approach of the UK, which has embraced online gaming and the billions of pounds in tax revenue they stand to generate from it.

At the moment, all signs look good for PartyGaming and US-based online gaming players alike as few analysts believe the US Senate will have the time to ratify the bill, even if they wanted to.

Ed note: Find out why PartyGaming is the best – check out PartyCasino!

PartyGaming Shares Rise in Face of Buoyant News

PartyGaming shares were driven higher today following speculation from a number of brokers that a bill banning online gaming in the US would not be passed into law.

Right-wing interest groups have been pushing for a bill which will have the effect of largely prevented any online gaming in the United States for a number of years now, which would be bad news for thousands of online gaming sites such as PartyGaming, the parent company of PartyCasino and the world’s largest online poker room, PartyPoker. The United States provides the bulk (some analysts designated the US market as generated almost half of

32 Vegas

the total online gaming revenue) of the worldwide online gaming market, and success within the United States have seen PartyGaming become a $10 billion company in the space of only five years since launch. The proposed bill would make it illegal for banks and credit card companies to allow payments to online gaming sites.

PartyGaming shares took a nosedive recently when owners of the blue-chip company sold another 10% of their holdings. PartyGaming shareholders were then hit with a 24% loss in value after the US House of Representatives voted overwhelming to pass the gaming bill. Since then, however, shares have been rising steadily and received another boost yesterday when leading stockholders like ABN Amro repeatedly designated PartyGaming shares as a “buy” recommendation. ABN Amro predicted a 160p target for PartyGaming, arguing that the fundamentals of the company remain unchanged, despite the recent heavy share sales by PartyGaming directors. PartyGaming is trading today at 111p, which presents massive value for investors should the ABN Amro prediction prove correct.

Three days ago, the US House of Representatives passed the gaming bill by a majority of 317 to 93, but Morgan Stanley and other brokers believe its unlikely the bill will be ratified by the US Senate.

Despite this, Morgan Stanley was more cautious than ABN Amro with their prediction for PartyGaming – they stuck with their “overweight” designation for the online gaming giant.

PartyGaming is only one of hundreds or thousands of online gaming platforms which will be affected one way or the other by the proposed ban of internet gaming in the United States, but as the largest online gaming company in the world, their rising and falling share price will be a key indicator of whether the proposed bill looks likely to be successful or not.

PartyGaming spokesperson John Shephard said the company was monitoring the situation closely and was hopeful the US government would eventually follow the “sensible and pragmatic” approach of the UK, which has embraced online gaming and the billions of pounds in tax revenue they stand to generate from it.

At the moment, all signs look good for PartyGaming and US-based online gaming players alike as few analysts believe the US Senate will have the time to ratify the bill, even if they wanted to.

Ed note: Find out why PartyGaming is the best – check out PartyCasino!

PartyGaming Shares Rise After Anti-Gambling Bill Delayed

Shares in online gambling giant PartyGaming were up almost 4% yesterday after news that Bill Frist, the Senate majority leader, looks to have failed in his attempts to attach the anti-gambling bill to ‘must-pass’ bills in an attempt to get the bill through the Senate before Congress shuts down this weekend.

The US Senate is keen to get the politically sensitive Homeland Security Bill through before the weekend, and Bill Frist had tried to attach his anti-gambling bill to the important piece of legislation, but it looked set to be pushed through yesterday without the gambling curbs attached.

Frist is also trying to attach the anti-gambling bill to the Defence Bill, but his efforts

there appeared to be in vain also. In any case, The Times Online report that the Defence Bill itself is unlikely to get through before the deadline tomorrow.

Online gambling industry analysts now feel that the chances of the anti-gambling bill getting through before the deadline are very remote. There is a chance the bill might be aired in a “lame duck” session of Congress, but historically, those sessions are usually reserved for more important pieces of legislation.

It’s looking increasingly likely that if Frist wants to get his bill passed, he will have to start the entire process all over again next year, by which stage it is thought gambling lobby groups will be able to make it much harder than it was for Frist this time around.

Upon hearing the news, PartyGaming shares rose 4¼p to 105¾p, with further rises expected Monday should the bill not get through this weekend.

Ed note: See why PartyGaming is the biggest gambling company in the world – check out Party Casino!

PartyGaming Founder Has Two Years To Cooperate With US After Plea

In most criminal cases, a person who is found guilty is usually sentenced within a couple of months of the plea. That will not be the case when it comes to Anurag Dikshit, co-founder of PartyGaming Plc.

Dikshit agreed to forfeit $300 million in addition to his guilty plea. He now faces up to two years in prison, but he will not find out his fate until December of 2010.

At least that is what everyone involved in the case would like the public to believe. The judge will be asked for leniency, but the chances are strong that Dikshit already knows he will be spending no time in jail.

The key to his guilty plea in Manhattan today could have been his agreeance to cooperate with the US Department of Justice. This will make other online companies wary over what Dikshit might let out of the bag.

While speaking in front of the Southern District Court of New York, Dikshit did express that he was not clear on what the exact laws were in the US regarding the Wire Act. “My understanding was that the laws changed over time and by the end, I realized that what I was doing was wrong,” he said.

Mr. Dikshit will not have to wait in jail for his sentencing, another luxury most criminals are not afforded. He did have to pay a $15 million bail.

The two-year suspension before the sentencing gives the Department of Justice plenty of time to get the information they crave from Dikshit. If he cooperates like he has claimed he will, there will most likely be no prison sentence.

With the first shoe dropping, the online industry will now wait and watch what chips could fall next. With a new administration coming in, there is a strong possibility that Internet gambling laws could once again be changed.

The European Union could soon get involved after the Remote Gambling Association asked them to protect the Eu’s interests. The common opinion is much like the opinion in many industries, that the current administration, who will soon be relieved of their duties, has produced great strain throughout the world.

“The current US administration has done nothing since they were placed in power but make their own rules regarding other countries. They have defied the wishes of their allies and enemies alike. It will be more than just Americans that will be rejoicing in January, it will be the entire world,” said Holly Rasmussen.

Partygaming back on top

PartyGaming did recover some ground at the end of 2009. The company reported a marginal year-on-year (YoY) dent with total revenue falling 6% to $446.2m from $472.9m in 2008, but with performance up in all key verticals except poker but did reclaim top spot in liquidity for non-US facing companies.

Jim Ryan said: “PartyGaming’s performance was resilient, but not immune. In 2009 we focused on operations and improving our operations. In doing so we actually returned the business to grow. If you look at our 4th quarter all four product verticals grew, and grew dramatically.”

The company had a 17% quarter-on-quarter growth for poker, casinos, bingo, and sports betting during that period. Ryan reported that he believes PartyGaming is in good shape for 2010. He pointed to an increased focus on Europe and regulated markets such as Italy, Denmark, France and possibly Spain.

While the company’s poker performance was down on 2008, they have made good progress and gained back its top spot for non-US facing poker sites. Ryan pointed to changes in its VIP and loyalty programmes, pricing modifications and promotions for the recent recovery – which belied a painful YoY fall of 44% in the vertical.

PartyGaming launched 80 games last year and has announced plans to add a further 50 in 2010, including branded Terminator, Sinatra and Rambo games. The product improvements and a major jackpot helped to drive interest and revenues.

PartyGaming And US Reach Historic Online Gambling Resolution

PartyGaming And US Reach Historic Online Gambling Resolution

The ongoing drama that was PartyGaming Plc. versus the US has finally come to an end. PartyGaming has announced early this morning that an agreement has been reached between themselves and the US.

Speculation had been building as to what the final agreement would amount to. In the end, PartyGaming agreed to pay $105 million to the US in exchange for no prosecution for their conducting online gambling business in the country.

“The resolution of our position with the US authorities marks an important day for PartyGaming,” said the company’s Chief Executive Officer, Jim Ryan, “It has been a long and complex process but we have reached an amicable solution with the USAO that makes commercial sense for our business and is in the best interest of our shareholders.”

In the Statement of Facts that accompanied the agreement, PartyGaming admitted that they had been taking bets from players in the US. They also agreed to stay out of the US online gambling market in light of the current laws. In exchange, the US agreed to no further prosecution of PartyGaming.

In 2006, US lawmakers voted in favor of the Unlawful Internet Gambling Enforcement Act. That law was supposed to be the end-all of Internet gambling in the country. What has happened, however, is that the law has been accused of being vague and millions of residents in the US are still gambling online.

US Representative Barney Frank is expected to introduce legislation that would overturn the UIGEA, but in light of the economic conditions, the Bill has taken a back seat for Frank who is the House Finance Committee Chairman.

While PartyGaming and many other foreign companies have pulled out of the market after the UIGEA, others are weathering the storm and still servicing the demand of millions of Americans.

The agreement between the US and PartyGaming has been rumored to be close for several months. Many people following the story expected that the negotiations would have netted more money for the US after one of PartyGaming’s founders, Anurag Dikshit, plead guilty in US court to offering illegal gambling services and agreed to pay $300 million.

The deal announced this morning could have major implications for PartyGaming in the immediate and distant future. Shares in the company are expected to spike after this news reaches investors.

The bigger picture, however, indicates that if, and when, US online gambling laws are changed, PartyGaming would be a candidate to receive licensing and re-enter the US market.

The financial terms of the agreement may not be met until 2012. PartyGaming will have the option of paying the $105 million in eight semi-annual installments, but the money is the smallest of details. As for the future of Internet gambling in the US, and PartyGaming’s role in it, Ryan offered a hint of what may be to come.

“We’re hopeful that, in the fullness of time, the new (Obama) administration will take steps to regulate it (online gambling).”

PartyCasino Summer Sizzler Promotion

PartyGaming has launched their August Summer Sizzler Promotion and online casino players can win up to $300 this month at PartyCasino.

The promotion begins Tuesday, August 1 at midnight EST and ends Tuesday, August 31 at midnight EST.

You can earn points on both PartyCasino and PartyPoker. If you earn a minimum of 100 points a day, across a 10, 20, 25 or 31-day period during August, you’ll win a cash prize, ranging from $30 to $300.

All casino games and poker games will earn you points for this promotion. Your bonus money will be added to your account balance by September 5

CasinoRoom $100 bonus

and is withdrawable immediately.

You don’t need to earn the points on consecutive days unless you’re going for the maximum bonus of $300. To earn the maximum $300, you’ll need to earn at least 100 points every day in August.

Winnings Table:

Play any 10 days – earn 100 points each day – win $30!

Play any 20 days – earn 100 points each day – win $75!

Play any 25 days – earn 100 points each day – win $150!

Play all 31 days – earn 100 points each day – win $300!

Ed note: Set up a PartyCasino account and start earning points today!

Poker industry: rapid growth

Poker industry: rapid growth

Matt Matros, a twenty-six-year-old student, has become a most discussed person in a poker community. Recently he has been a Party Poker qualifier who finished third at prestigious competition, published Onlinecasinonews.com. Matt booked himself a seat at the World Poker Tour with the help of PartyPoker.com and finally collected $706,903.

Matt was not a rookie for a gambling theme. As a graduate student in fiction writing at American Sarah Lawrence College, he has written a book about poker. He assumes online punters to be more advanced in playing card games than notorious renowned professionals.

“Sometimes the right hand is not the traditional hand,” he explains. “Traditionally, if you have the best hand, you raise or call and then fold if you don’t. But if you learn online at sites like PartyPoker.com, you’ll soon figure out that it’s more about the odds and the range of cards in the hand. It’s really about your equity, not about the best or worst hand.”

Matt has never won more than $5000 dollars playing poker is thrilled at his performance. “I still can’t wrap my head around making it to the final table,” he said. “It’s just a dream come true. With my best friend and poker mentor sitting in the very seat next to me – what are the odds of that happening? It’s just unbelievable.”

A new study by Ladbrokes reveals the true future of online poker.

Apparently, the popularity of online poker has grown six-fold in the last year, and it seems like its still on the rise. A new study by a bookmaker Ladbrokes reveals the true future of Poker