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Thursday, October 05, 2006

PartyGaming shares continue to collapse, PokerStars IPO cancelled

... and the fallout continues...

PartyGambling continues to unravel Wednesday following a serious of negative announcements while number two facing online poker brand, PokerStars, declared it will not be seeking a previously-planned IPO any time soon. Shares in beleaguered PartyGaming took a further battering today following a newspaper report which said it would have to negotiate a new loan facility with its banks within 30 days of anti-gaming legislation being approved.

Internet gambling stocks crashed on Monday after strict new laws to crackdown on online betting in the United States were unexpectedly approved by Congress at the weekend.

The value of the sector was halved and billions of pounds were lost as shares in the London-listed companies tumbled to their lowest ever levels.

Party Poker owner PartyGaming saw its stock slide 58% on Monday and a further 9% on Tuesday as it generates three-quarters of its business in the US.

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