PartyGaming 'in talks' with US regulators
PartyGaming is struggling to cope with its post-US era
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Monday, 04, Jun 2007 10:18
Online gambling firm PartyGaming has met officials from the US department of justice (DoJ) as the country's recent clampdown on online gambling continues.
The Gibraltar-based firm lost over 60 per cent of its share value in the initial collapse in the sector after US legislators effectively outlawed internet gaming on October 13th last year.
Last week rival company BetonSports pleaded guilty to racketeering, including fraud and money laundering, as investigations into malpractice across the sector continued.
Now PartyGaming has said it has been in "discussions" with officials over activity taking place prior to the enactment of the Unlawful Internet Gambling Enforcement Act involving "third parties".
"This has created some uncertainty as to what actions, if any, US law enforcement agencies may take against industry participants," the company said in a statement this morning.
"Against this background, the company initiated discussions with the US attorney's office for the southern district of New York and is in the process of voluntarily responding to a request for information issued by that office.
"It is too early to assess the likelihood of any particular outcome of these discussions."
PartyGaming said in its most recent trading update last month that its earnings before interest, taxes, depreciation and amortization (Ebitda) were "significantly below the current market consensus".