company PartyGaming open for U.S. sale, bad news?
One of the biggest online
poker companies PartyGaming is testing the waters with Las Vegas
an interview with the Financial Times, Mitch Garber, the chief
executive officer of PartyGaming, said that the company is
seeking to hear offers for a buyout by big casino players in Las
Vegas. Garber refused to comment if there are talks on the way
with a specific U.S. gambling company.
PartyGaming, which operates the online
poker room Party Poker, has a market cap of $2.5 billion and
talks about a sale are quite troublesome for the online gambling
industry - no one wants to sell a winning horse. After the
introduction of the Unlawful Internet Gambling Enforcement Act (UIGEA),
which made financial transactions in the U.S. to Internet
gambling websites illegal, PartyGaming was among many online
gambling companies to stop allowing U.S. residents to play poker
on their websites. Those gambling websites are now left with
only a few European countries, after the Asian and South
American markets turned out a bust.
The fact that PartyGaming is looking for
a sale compliments our view on the online gambling market -
without the USA players there will be room for only a handful of
Internet gambling companies to remain profitable, mostly in the
sports betting sector of the industry. Don't believe the hype,
unless you are being approached, "a sale" means that someone is
trying to get rid of something.