Online poker prohibition could be overturned
Poker Lobby & AGA groups aim to end Online Gambling Bill


The Poker Players Alliance and executives for the American Gaming Association (AGA) say they are hopeful that the recent political changes in the U.S. Congress will help them overturn the Unlawful Internet Gambling Enforcement Act of 2006 (UIGEA).

You may recall how the UIGEA was appended onto to the sure-to-be-passed Safe Port Bill when most Senators had already cast their votes and left, in the final hours before the Republican-controlled Congress adjourned for mid-term elections.

The UIGEA, while not making online poker illegal, did made it illegal for banks and financial institutions to process transactions for online gambling sites from U.S. customers when it was signed into law on October 13. Regulations that banks need to comply with have yet to be defined. A Government board has until July 2007 to define them.

AGA President Frank Fahrenkopf said the AGA previously opposed online gambling, saying, "Our policy changed back in April when we took a position that we thought the best way to go was to have an independent commission look at it."

Many analysts around that timeframe noted how online gambling actually lead to previously hesitant players coming to the physical casinos, swelling the number of overall casino visitors, which likely helped change AGA's perspective.

So the AGA board of directors will meet December 6, said Fahrenkopf, to consider whether "to support legislation in the new Congress calling for an independent study of Internet gambling to see if it can be properly regulated, controlled, taxed and licensed here in the United States."

Fahrenkopf pointed out, "My guess is that they are going to say let's go ahead and do it."

This past week Terry Lanni, chief executive of MGM Mirage who is an AGA board member, said the UIGEA is "ridiculous" because it was signed into law Oct. 13 as part of a larger port security bill -- and because it exempted horse races and lotteries, and online bets placed while on American Indian land.

Nevada Representatives Jon Porter and Shelly Berkley had previously introduced a bill to create a Congressional Commission to study Internet Gaming this past May. But the bill died. Noteworthy is that both Porter and Berkley were re-elected last week.

In contrast to the prior Congressional Commission proposed, if the AGA votes for a study it has already said it prefers an independent commission such as the National Academy of Sciences to do the study, noted Fahrenkopf, so results are free from the influence of lobbyists.

AGA's board includes CEOs from some the biggest live casinos in Las Vegas, such as Boyd Gaming CEO William Boyd, Harrah's Entertainment CEO Gary Loveman, MGM Mirage CEO Terri Lanni mentioned above, and Wynn Resorts CEO Stephen Wynn, amongst others.

Many bloggers have remarked if these well known casinos launch their own online gambling sites then a large majority of players will play at them because of brand recognition and huge marketing budgets, causing yet another re-alignment in the online gambling industry.

In an interview with Reuters news service, Fahrenkopf also remarked how the stated goal of the UIGEA was to protect American citizens. Instead, he noted, it caused many legitimate and responsible operators to pull out of the U.S. opening the way for unregulated companies to fill the void, since most US players were likely to continue gambling online.

He did not go as far as many others have to call the legislation Prohibition II, as did Pulitzer Prize-winning writer George F. Will in Newsweek's Oct 23rd edition and U.K. culture secretary, Tessa Jowell.

President of the 120,000-member Poker Players Alliance (PPA), Michael Bolcerek, said that results of the Congressional election have emboldened the PPA.

"Our members and other poker players went to the polls. They influenced the federal election," he said. "In the next 12 months we're confident that we'll get a study commission bill. We think an exemption [for online poker] is in order, as well."

Legal expert professor I. Nelson Rose, of the Whittier Law School, harshly criticized the UIGEA, saying how it is confusing and contradictory with all its exemptions, and noting how a portion of the bill even sanctions Internet betting conducted within states and tribal lands.

"It's a public embarrassment...it's a mess," said Rose. "Eventually I think they'll get Congress to change the law to do for Internet poker exactly what they did for Internet horse racing. It's an exemption but (based on) states' rights."

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Gambling911.com News Wire

Originally published November 20, 2006 1:28 pm ET

Keep away...profit warning out today. There will be more to come as more legislation in place. Will head towards 30p


Severe profit warning from PartyGaming
MoneyAM

PartyGaming warned that underlying profits for the current year will be well below current market forecasts due to higher than expected distribution costs.

The company reported first quarter group revenue rose 26% to $94.8m.

It said the rise in distribution costs was related to a 117% surge in player sign-ups for 'real money' gaming to 233,900, which was substantially ahead of expectations.

For the first quarter, it said its active player days rose 129% to 7.1 mln from a year ago.

However, the online gaming company said it was comfortable with current full-year market forecasts for revenue. The higher numbers of active players and new player sign-ups achieved in the year to-date is expected to benefit future performance.

janetbennison - that has to be the worst call of all time!!

stay away from this one is my advice.

Morning all ..............

Have to admit ........exited this morning ................ suffered a loss on this last trade.

Cheers
Amar

Daniel Stewart downgrade from 50p to 38p

Morning all

Are there any brave buyers amongst us this morning?

Cheers
Amar

Brave or suicidal???
With a broker downgrade & probably a day of profit taking on other stocks, I can't see any reason to buy this unless you are going short.

see post 151 for useful chart, though the chart itself is pretty bleak having dismally failed at 200 and now fallen decisively through 25 + 50

Thanks for your thoughts ............ can't really argue with you.

Cheers
Amar

The ship has steadied a bit this morning and we are back in the blue which is good, there is still hope for this stock.
You do wonder being at a bit of a low ebb and with 888 annoucing that they are looking to make an acquisition whether partygaming could be a potential target ???

to continue being boorish! ..... this sector is unstable and unpredictable as everything is totally dependent upon what US is really going to do .... meanwhile, sp gyrates wildly on the slightest whiff of a rumour which is then proven inaccurate or even downright rubbish .... imo, this whole sector is for masochists and lunatics only

That's a bit harsh, cynic. I fall in to both categories, having SBT & 888. PRTY has always been too volatile for me. Ah well, might spend some of my past profits from gaming stocks on some therapy if you think that's what's needed! :o)

never been known to mince my words Harry .... would hate anyone to think i meant other than what intended!

why dont you set a buy order in at say 2-3p below the current price - then if it dips during the day you can usually pick up the share cheap and sell at a profit later in the day?? daytrading works.....

LONDON (Thomson Financial) - "PartyGaming PLC, the world's biggest online gaming firm, has held discussions with the US Department of Justice (DoJ) as it seeks clarity on retrospective legal action being taken against the industry.
The Gibraltar-based group said it initiated the talks in response to actions taken by law enforcement agencies against other internet gambling companies which had US-facing operations before the enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA) in October last year.

It believes these have created uncertainty as to what actions the US justice authorities could take against other industry participants. Sources familiar with the matter told Thomson Financial News the pre-emptive move was motivated by a desire to remove that uncertainty.
PartyGaming admitted it is too early to assess the likely outcome of the discussions, however, adding that a further announcement will be made if and when appropriate.

The company is also voluntarily responding to a request for information issued by the Attorney's Office for the Southern District of New York.

The UIGEA effectively banned online gambling in the US and PartyGaming, which had derived around 75 pct of its revenues from the US, was forced to stop customers in the US from planning or making deposits on any of its sites.

James Hollins, an analyst at broker Daniel Stewart, said he believes this is 'the most sensible route for operators that used to offer their services into the US, essentially working with the authorities to hopefully draw a line under any potential ongoing litigation'.
But he added that the very mention of PartyGaming and the DoJ in the same press release is 'likely to spook the market'.
However, that was not reflected in the share price which was unchanged at 41-1/2 pence at midday. Rival 888 Holdings PLC was down a 1/4 at 115-1/2.

Hollins believes there is only limited ongoing US regulatory risk and said successful negotiations with the DoJ could underpin support for the stock.

Daniel Stewart is keeping a 'hold' recommendation and 38 pence price target on the stock.

Meanwhile, Numis analyst Richard Carter said he viewed today's announcement as a positive move for PartyGaming and its peer group.

'Although it is too early to assess the outcome of these discussions, our intelligence tells us that there now appears a willingness on behalf of the US Attorney's Office to settle and draw a line under the uncertainty caused by recent DoJ actions,' he said.

Numis has a 'hold' recommendation on PartyGaming and a 42 pence price target. 888, on which it has a 'buy' recommendation and 172 pence price target, remains its key pick in the sector.

Last month, BetOnSports PLC pleaded guilty to federal racketeering charges accepting that it had committed 'repeated mail and wire fraud, operated an illegal gambling business, laundered money and admitted to multiple state gambling felony charges'.

The majority of BetonSports' revenues had come from the US. The company is now in the process of filing for bankruptcy.

BetOnSports founder Stephen Kaplan and chief executive David Carruthers, a former Ladbrokes PLC executive, remain under arrest and the plea deal will not end their prosecution.

In March, Sportingbet PLC said it had reached an 'amicable' resolution with authorities in Louisiana and that warrants for the arrest of its former chairman Peter Dicks and other executives had been dropped.

The industry is still holding out hope that the US Congress could reverse the legislation.

Barney Frank, the Democratic chairman of the House financial services committee, remains committed to overturning the UIGEA but conceded recently that the move lacked support among lawmakers.

PartyGaming refused to comment further on today's statement".

Online Gambling Industry Could See Relief with Suit Against Gonzales
The online gambling industry could see some much needed relief with the announcement that an independent group is seeking judgment restraining the United States from enforcing the "Unlawful Internet Gambling Enforcement Act of 2006" (UIGEA). The current law prevents U.S. credit-card companies and banks from processing payments to online gambling businesses.

Gambling911.com first reported that The Interactive Media Entertainment & Gaming Association (iMEGA) filed the request Tuesday.

"There is something brewing in the online gambling industry that will be very positive for everyone," said one respective industry expert and now we learn what that positive development is.

The suit filed today in U.S. District Court outlined how the Unlawful
Internet Gambling Enforcement Act infringes upon basic constitutional
rights and sets a dangerous precedent for I-commerce by criminalizing
the transmission of money if the end result is illegal in some
unspecified place. The injunction, if granted, will prevent the
government from enforcing the UIGEA and pave the way for Internet
gambling to resume pending further order of the court.

"The purpose of the Unlawful Internet Gambling Enforcement Act is to
prevent Americans from engaging in their fundamental rights to conduct
their lives in the manner they wish to live it - to be free from the
government imposing public morality in the privacy of one's home", says
Eric M. Bernstein, Esq., attorney for iMEGA.

The lawsuit also seeks to stop the enforcement of the UIGEA based on the
recent ruling of the World Trade Organization in a final appeal which
found the United States in contempt of treaty obligations regarding
Internet gambling. Washington spokesmen recently said the United States
would not appeal the ruling in favor of Antigua and Barbuda, the
Caribbean nation which won the WTO challenge against the US and one
nation where Internet gambling is legal. Instead, Washington says, the
US will try to modify its treaty obligation to eliminate Internet
gambling. The WTO ruling permits sanctions to be imposed against the
US.

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Christopher Costigan, Gambling911.com

Originally published June 5, 2007 5:00 pm ET

Anyone know of anything in this sector ? All seems to have gone quiet!

prob just lots of people who fstupidly ollowed the false messiah(s) about how this and other gaming stopcks would be rocketing back upwards and are now quietly crying in the corner

Am sitting tight on SBT & 888 as they offer some kind of potential in takeover & growth. PRTY does not offer anything at the moment imo.

Hi cynic,

i wounder if you can advice me . i am new to the sheare dealing world and i have made few investments including PRTY, which has cost me. what do i need to look for before buying shares. At the moment i buy based on hunch. Help


onireke

a direct line to God is always useful!

i am certainly no whizz and have no pretence to same, so i read here, "talk" to a few here whom i trust, talk to my broker who often has some very good advice, read some of the biz pages and mags, look at charts to gauge momentum (very important to my mind) ..... and finally keep my fingers crossed that i don't drop too many clangers and cut losses prudently.