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PartyGaming Re-shaping Would Cost $250 Million

PartyGaming said Friday, Oct. 20, that it would take $250 million to re-structure its business after the companby pulled the plug on its US operations. The company however, made a commitment to maintain its presence in the country.

PartyGaming was forced to stop operations in the United States after President Bush signed into law a bill that would ban most forms of online gambling.

At the moment, PartyGaming is looking at ways to provide services to the 10 million customers not banned under the Unlawful Internet Gambling Enforcement Act.

"We have looked at 15 or 20 ways to monetise our American assets. But it's early days," said PartyGaming finance director Martin Weigold. Weigold said consolidation was inevitable in light of the new legislation and stressed that PartyGaming has always been open to potential acquisitions.

"There is going to be a number of companies that exit this market," Mr Weigold said. "Some will be voluntary, where they sell to a bigger player, and some will be involuntary."

PartyGaming's main market has always been the US gamblers. However, figures are now showing that business outside of the US is just as healthy. As an example, in the three months to the end of September, the revenues of PartyGaming from outside of the US soared 158 percent to $92 million.

PartyGaming will also most likely divide its marketing budget and centralize its 2,000 workers based in Gibraltar, Bulgaria and India.