Online Casino Operator pays $105million but Shares rise 15%
7th April, 2009
The Online Casino and Poker Operator, PartyGaming, saw its shares rise 15% on Tuesday, following the announcement of its settlement with US Authorities.
According to a statement by Party Gaming they will pay $105million, in instalments until 2012, starting with $5million on the 1oth April.
Between 1997 and 2006 PartyGaming allowed US players to use their sites to gamble, but once the US Gambling Regulations came into practice in 2006, this was halted. However the legality of its earlier business was disputed and negotiations followed.
Finally Almost two years later, the issue has been resolved, with a settlement agreed by both parties.
Jim Ryan, PartyGaming CEO said, "'The resolution of our position with the U.S. authorities marks an important day for PartyGaming. It has been a long and complex process, but we have reached an amicable solution. We are now well-placed to seize organic as well as strategic opportunities that previously were beyond our reach.”
Despite the PartyGaming’s shares rallying 15.1% on Tuesday afternoon when the settlement was announced. The shares are still more than 70% lower than in September 2006 when, the dispute started.
By Rommon
