PartyGaming cuts its losses

The uncertainty hanging over internet poker and casino operator PartyGaming has lifted after the company paid $105m to escape prosecution by US authorities.

Internet poker and casino operator PartyGaming clearly knows when to walk away from a bad hand. In paying $105m to escape prosecution by US authorities, said the FT's Roger Blitz, the company accepted it had violated gambling laws between 2001 and its exit from the US market in October 2006.

Online betting is outlawed in America and when the authorities clamped down in 2006, Partygaming and others were forced to quit the American market. PartyGaming's settlement is expected to lead to similar deals with its rivals, such as 888. Partygaming's shares gained 14% on the news.

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