This one hit the markets running today. Despite negative publicity it was well supported so I jumped in for a small holding--anyone else joining in?? I am hoping for a good run up before the shorters get going.

It would seem that infringements of civil liberties are imposed by the republican Party in stopping gamblers transferring their funds through existing banking systems. Test cases by individuals against their banks will bedevil the new legislation for years. We await legal actions commencing as acts of gambling are NOT illegal at the point of sale. Transferring funds is NOT illegal at the point of contact between punter and bank.

Yes it will be the enforcement of the law which will prove a very big headache and if you have a comitted gambler who has reasonable assets, there are several tax havens outside US legislation offshore that could be used as middle a/cs - how can you stop funds passing from one a/c to another if they are both banks? The purpose of the funds once their dock outside the US are a different matter. If people want to get round this they will - look at prohibition, did it stop booze?

Harrycat
No I'v lost enought spread betting, I loose it in different ways now. I am waiting to see the bottom, of PRTY well to try and guess wher it is and then to buy SE38 SG Covered warrant. Unfortunately they dont do a Put warrant on PRTY. At least you can only loose what you put in, on any deal with CWs though the various parameters that decide the price do erode the value on a time basis.

On working lunch last week it was said 75% from USA not 85% hence my 28p guess. Have you studied the accounts? Though of course accounts can be made to look like anything you want.
I have about 6 different ways of determining the bottom but they all suffer from the same fault.

Off to watch working lunch now. cheers!

rpaco - I have seen figures of anything between 75% - 90% of PRTY exposure to the U.S., so it's difficult to make an accurate judgement. I would tend to assume a worst case scenario and work on 90%.
I would also be very tempted to just sit & watch for a while as far as PRTY is concerned. There are other safer stocks out there, even in the gaming sector.

Worth a read :

http://www.cardplayer.com/poker_news/news_story/1446?class=PokerNews

http://news.moneycentral.msn.com/provider/providerarticle.asp?feed=FT&Date=20061006&ID=6084392

According to Jonathan M. Winer, a Washington attorney at Alston & Bird LLP who has closely monitored the WTO action, the legislation could well exacerbate the problems the US has already has with the WTO.

"To the extent that the legislation eliminates foreign competition for activities that remain lawful in the U.S., such as online betting on state-licensed horseracing, or state-licensed casino gambling that meets federal guidelines, there's no doubt it raises WTO issues," he said.

Also very worth a read :

http://economist.com/business/displaystory.cfm?story_id=7997055

PP .... the Washington attornies and everyone may ultimately prove that the US "is breaking the law", but it is likely to be a long time coming to court and of course much longer until there is a definitve result and all appeals finished .... in the meantime, many of these internet gambling companies will be long finished

looks like the buyers in us are looking to take over online gaming business in the us. There could be quite a lot of action over the next few weeks. Look at the news in sunday times online out today. sportingbet have been approached by quite a few companies. If the gaming companies get taken over in us. Then the new rules and regulations with not affect us. Time for a cup of tea. Have a nice sunday everyone.

news just come out 2.45 uk government draws up plans for online betting report.

PARTYGAMING TO BE DELETED FROM FTSE 100

that does mot surprise me now it has dropped down to this current level.

Well, we can all be wrong, but opinions may vary . . .

Partygaming downgraded to 'SELL' by Numis Securities with 23 Pence target.

Dresdner Kleinwort maintain 'BUY' rating on Partygaming, current price target 56 Pence (cut from 75p).

my money would go to Numis ..... but then my money would not be in PRTY anyway!

I think the thing that is saving PRTY from collapse is the fact that it has big cash reserves, even allowing for the $250m write down for lost U.S. business.
IMO it's has got to acquire a bigger market share, so maybe it is seeking targets???
The 23p must be a projected valuation based on the remaining 15% of it's business, much the same way as SBT was revalued.
M or A has got to be the way forward.

With the money taken off the table during float, the founders can easily setup an US online gambling operation - if they are willing to face US revenue authority scrutiny and pay US taxes.

Anyone know the current PRTY cash reserve per share? Thanks.

"Online gambling group Partygaming has said that restructuring its business after pulling out of the US will cost it about $250m (133m)." (BBC Business)

Why?

it's a goodwill write off, (intangibles) not a cash loss.