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US Gambling Laws Threaten £5.5 Billion Float

UNITED KINGDOM – As reported by the UK Guardian: "Partygaming, the Gibraltar-based owner of the world's biggest online poker site, may be forced to pull its £5.5 billion London float as fears grow about the legality of internet gambling in the United States.

"Analysts at blue-chip US institutions who would be expected to buy shares in PartyGaming said this weekend they will not automatically back the firm and will need convincing that the US government will not harm the company. Online gambling is illegal in America.

"The situation could force PartyGaming either to lower its target price or possibly pull the float altogether.

"…The stakes could not be higher for PartyGaming's four owners who would share more than £1bn in cash if they succeed in selling the 23 per cent of the firm they created five years ago.

"…PartyGaming admitted this weekend that it takes 90 per cent of its revenue from the US. Its prospectus will be published by the end of next week and the firm will then attempt to persuade institutions to back the company…"

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