Party Gaming Head Announces Consolidation Of Online Gaming Firms Once US Barrier Removed

Mitch Garber, the head of Party Gaming.com has stated that the online gaming industry is particularly prepared and ready to consolidate. He said this after the release of his company’s first half financial results while speaking with media journalists. He added however, that this would not take place until the hopefully impending removal of the barrier of retrospective legal action from US authorities. He also noted that that his company, PartyGaming plc is well situated to be at the nexus of such activity.
PartyGaming plc CEO Garber informed reporters yet again that this is in addition to its competition 888 Holdings plc, PartyGaming. Apparently just last June the two companies began negotiations with the Department of Justice in, talks in which they sought out decisions with reference to possible actions that might be undergone by law enforcement agencies, and these against other internet gambling companies which have been facing possible United States litigation actions since before last year’s enactment of the Unlawful Internet Gambling Enforcement Act.

Garber explained to the media journalists that he sees his company’s and others such as 888’s having voluntarily approached the Department of Justice, as representing a giant step in its efforts to deal with and put behind them the legality of various issues relating to the companies. He also mentioned that these talks are still in progress and that he is looking forward to what he expects to be a very positive outcome.

He mentioned that his company PartyGaming plc  and their competing company, 888 are continuing to move toward what this expect to be a satisfactory resolution. Garber also stated that he believes that once these issues are resolved with the Justice Department officials, there will be a spate of consolidation activities and that since they are the world's largest online poker operator, he expects that PartyGaming plc will definitely be involved in deals of this nature.

As CEO and party chairman Garber made clear, his organization serves a $2-3 billion market and is thus in a great position to act as a consolidator of medium sized companies. He adds that the company itself might definitely serve as a target for several of the mainstream, large international gaming companies. In fact he perceives that in the future both of these situations will probably become a reality, his company consolidating with other companies and also being consolidated with by other large mainstream companies.
It was only earlier this very year that the famous online betting service, Ladbrokes PLC was reward to do away with its plans to acquire 888. This was due to ongoing concerns that it would not have been able to successfully absorb any of the other company’s liabilities in addition to concern with regard to other legal problems that 888 was facing in connection with its U.S. operations.

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