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PartyGaming Shares Highly Sought After

LONDON – As reported by the New York Times: "The controversial online gambling company PartyGaming burst onto the London exchange Monday with a highly sought share offering that shot up 11 percent by the end of the day, valuing the company at more than $9 billion.

"Several rival online casinos are expected to follow with stock offerings of their own, even though the Justice Department in the United States has declared the business illegal.

"The public offering for PartyGaming was more than three times oversubscribed, a volume that indicates that American fund managers bought shares, bankers here said. The $9 billion market capitalization makes PartyGaming more valuable than casino empires like Harrah's Entertainment and Wynn Resorts, and nearly as valuable as MGM Mirage.

"…While the business of online gambling is illegal in the United States and elsewhere, it was legalized in Britain this spring, and many Americans visit the Web sites. Britain established a gambling commission to oversee the business, in an effort to lure operators from offshore locations to Britain, where they can be regulated more easily. PartyGaming is based in Gibraltar, a British crown colony…"

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