Online gambling group PartyGaming, owners of betting websites PartyCasino and PartyPoker, has entered into an agreement with the state gambling operator of Denmark. Under the deal, PartyGaming will provide its online gaming technology in anticipation of the regulations liberalizing the gaming market in some regions in Europe.
PartyGaming is the sixth largest gaming operator in the entire Europe, based on market value. The deal with Danske Spil, which was signed recently, involves a five-year period within which PartyGaming will provide its online poker and casino platform in Denmark.
The deal is PartyGaming’s first foray into government transactions. As such, it is hinged on legislation that is scheduled to be passed by the Danish Congress in 2011. Danske Spil, on the other hand, is among Europe’s major betting and gaming operators. In 2008 alone, it posted almost DKr11bn ($2.1bn) of revenues turned over to the government.
Industry experts are looking forward to seeing more deals of this nature, as other European countries decide to legalize online gaming, partly because of its sweet promise of huge tax revenues.
Last year, it was Italy that welcomed online tournament poker to its shores. It seems that France is the next country to follow suit, as hearings on the matter are set to begin this month. The planned legislation hopes to reform the system of regulating and licensing online gambling operations. Germany, on the other hand, is moving tentatively in the same direction.
Numis analyst Wyn Ellis said the public should expect a number of similar deals in the future. “As these European markets liberalise, incumbents and operators within these countries are likely to be well placed to win the licences. So the strategy for companies like PartyGaming is to target various local partners and provide business-to-business services to them.”
PartyGaming chief executive Jim Ryan calls the deal with Danske Spil a “landmark” agreement. Mr. Ryan added that the agreement is aligned with the company’s goal of tapping the global corporate and government market as a leading provider of B2B service offerings.
It can be remembered that PartyGaming exited from the US market in 2006, when the Bush administration imposed a ban on online gambling.
In October of last year, PartyGaming co-founder Anurag Dikshit gave up majority of his 28-percent share in the business to institutional investors. Mr. Dikshit was indicted for charges of online gambling in the US in December 2008, pleaded guilty to It, and settled with a $300m fine.
Yesterday, PartyGaming shares decreased by 1.1p to 278.3p in London.
PartyGaming is the sixth largest gaming operator in the entire Europe, based on market value. The deal with Danske Spil, which was signed recently, involves a five-year period within which PartyGaming will provide its online poker and casino platform in Denmark.
The deal is PartyGaming’s first foray into government transactions. As such, it is hinged on legislation that is scheduled to be passed by the Danish Congress in 2011. Danske Spil, on the other hand, is among Europe’s major betting and gaming operators. In 2008 alone, it posted almost DKr11bn ($2.1bn) of revenues turned over to the government.
Industry experts are looking forward to seeing more deals of this nature, as other European countries decide to legalize online gaming, partly because of its sweet promise of huge tax revenues.
Last year, it was Italy that welcomed online tournament poker to its shores. It seems that France is the next country to follow suit, as hearings on the matter are set to begin this month. The planned legislation hopes to reform the system of regulating and licensing online gambling operations. Germany, on the other hand, is moving tentatively in the same direction.
Numis analyst Wyn Ellis said the public should expect a number of similar deals in the future. “As these European markets liberalise, incumbents and operators within these countries are likely to be well placed to win the licences. So the strategy for companies like PartyGaming is to target various local partners and provide business-to-business services to them.”
PartyGaming chief executive Jim Ryan calls the deal with Danske Spil a “landmark” agreement. Mr. Ryan added that the agreement is aligned with the company’s goal of tapping the global corporate and government market as a leading provider of B2B service offerings.
It can be remembered that PartyGaming exited from the US market in 2006, when the Bush administration imposed a ban on online gambling.
In October of last year, PartyGaming co-founder Anurag Dikshit gave up majority of his 28-percent share in the business to institutional investors. Mr. Dikshit was indicted for charges of online gambling in the US in December 2008, pleaded guilty to It, and settled with a $300m fine.
Yesterday, PartyGaming shares decreased by 1.1p to 278.3p in London.