Online gaming group PartyGaming said on Friday it was not concerned by recent developments which have caused mild panic in the online gaming industry.
Last week, the CEO of rival gaming company BetonSports, David Carruthers, was detained upon transit through the US and charged with racketeering for his company’s activities within the US gaming market. However, PartyGaming has distanced themselves from operators like BetonSports. PartyGaming Chief Executive Mitch Garber explained: “The characteristics of the indictment are very far away from what PartyGaming does. PartyGaming intentionally does not take US telephone bets on sports.”
PartyGaming’s share price has been falling steadily
since May as a result of the increasing chances of a bill which would all but exclude overseas-based online gaming companies from accessing the US market, which accounts for between 50 and 70 percent of the worldwide gambling market. Following the news last week of the BetonSports indictment, PartyGaming shares slumped almost 20% in the following day’s trading on the UK Stock Exchange.
Despite the industry turmoil, PartyGaming appears confident in their own future success and may even be looking to expansion. Garber said the company was looking at options in Europe and had a number of “very advanced” initiatives underway.
He told Reuters the fall in share prices last week made acquisitions more attractive and that PartyGaming was evaluating opportunities as a result.
“I’ve had a very strong M&A focus in my previous life and Martin (Finance Director Martin Weigold) and I have been looking at companies,” he said. “Any time price becomes more attractive, I guess deals become more attractive,” he added.
Ed note: PartyGaming is the parent company of Party Casino!