04 Oct 2006
New US law hits internet gambling companies
BY Sarah Todd
Repercussions from a new law banning online gaming in the US are continuing as PartyGaming has cancelled its dividend and AIM-listed World Gaming has reportedly announced it is in discussion with its banks.
The interim dividend of three cents a share was due to be paid by PartyGaming on 31 October. The company will instead spend the money, which totals US$120m (£64m), on acquisitions.
World Gaming – which is understood to have a net debt of US$23m (£12.2m) – reportedly said that “material adverse change” to its business from the new US law passed by Congress could put it in “technical default” of its loan agreement.
The US accounts for approximately half of the US$12bn (£6.4bn) internet gambling market and considers the industry illegal. PartyGaming and World Gaming are among more than 2,000 offshore companies who operate poker and sports betting websites in the US. Details: www.partygaming.com
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