888 Also in Talks with US Justice

888 announced yesterday they were also in talks with the US Attorney's Office for the Southern District of New York, leading some analysts to speculate on a possible merger between 888 and PartyGaming if they can get the all-clear from the US DoJ.

PartyGaming announced on Monday they had voluntarily responded to a request for information from the US Attorney's Office for the Southern District of New York. Both PartyGaming and 888 (Casino-on-Net and Pacific Poker) do not accept US customers following the passing of the UIGEA last year, but it is understood there are still questions to be answered relating to their activities in the US prior to withdrawal.

Echoing the PartyGaming statement, a 888 spokesman said: "It is too early to assess any particular outcome of these discussions."

Both PartyGaming and 888 will be keen to look forward, and it is likely they are understandably anxious to clear the air with the Americans rather than continue on with the uncertainty of possible action taken against them by US law enforcement agencies.

Analysts continue to spin this development as possible good news. James Hollins at Daniel Stewart believes that 888 and PartyGaming are making the right move, "essentially working with the authorities to hopefully draw a line under any potential ongoing litigation".

Richard Carter at Numis believes "there now appears a willingness on behalf of the US Attorney's Office to settle and draw a line under the uncertainty caused by recent DoJ actions".

Investors disagreed that this news is good news. PartyGaming (LSE: PRTY) shares continued to fade yesterday, closing at 40.5p whilst 888 (LSE: 888) strengthened to 119p at close of trading.

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