Wednesday, November 01, 2006

U.S. Law Causing Turmoil in Online Gambling Industry - New York Times

"Many of the largest public online sites, like PartyGaming and Sportingbet, got the majority of their revenue from the United States. PartyGaming suspended its United States business after President Bush signed the Unlawful Internet Gambling Enforcement Act on Oct. 13. Bankers, analysts and Internet executives say online gambling companies are now discussing merging with each other. Meanwhile, private equity companies, which are flush with cash, have been wondering whether they can assemble a few of these companies into one, slash their costs and reap the profit.
Traditional casino companies in the United States and Asia are also considering buying up the sites as a way to enter Europe. And British betting-shop chains like Ladbrokes and William Hill are thinking about deals with the online gambling companies, bankers and analysts say. "

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