PartyGaming Contacts US Officials

2007 June 05, Jonny Vincent

Online gambling company PartyGaming announced on Monday they had 'voluntarily' contacted the US Attorney's Office for the Southern District of New York in response to requests for information.

PartyGaming is the parent company of Party Casino and Party Poker.

The company released a brief regulatory statement to the market saying that they were responding to the US Attorney's Office for the Southern District of New York to ascertain their position following action taken by US law enforcement agencies leading up to and after the enactment of the Unlawful Internet Gambling Enforcement Act last year.

"This has created some uncertainty as to what actions, if any, US law enforcement agencies may take against industry participants, based on activity in the US prior to 13 October 2006," the statement said. "It is too early to assess the likelihood of any particular outcome of these discussions, and a further announcement will be made if and when appropriate."

PartyGaming withdrew from the US after the UIGEA was signed into law on 13 October 2006, but it appears that US law enforcement agencies may still have some questions they require answers to.

PartyGaming stated that further announcements would be made if and when appropriate.

Some brokers are spinning the news as potentially positive for beleaguered company, but investors reacted nervously to the announcement and PartyGaming shares drifted to 41p at close of trading today.