Bwin.Party to Enter the US Market after 6 Years
bwin.party is preparing to enter the US market, by applying for a license. The gambling firm is keen on taking advantage of the opportunities for casino operators in the US market, once online gambling is legalized.
Based in Gibraltar, bwin.party owns the well-known poker room, Party Poker. Bwin.Party was created last year after a merger between PartyGaming and Bwin Interactive. The new company formed after the merger is the biggest publicly traded internet gambling firm in the list of London Stock Exchange.
PartyGaming’s Exit from the US
The merger took place in 2006, 5 years after PartyGaming exited theUSmarket. The company quit the market after the Unlawful Internet Gaming Enforcement Act (UIGEA) was passed in 2006. Apart from PartyGaming, quite a few gambling firms closed their doors to US customers following the UIGEA.
In 2009 April, PartyGaming reached an agreement with the US justice department (DOJ) according to which the firm was charged $105 million penalty, which it had to pay to the US government. This was because it conducted online gambling operations before the passing of the UIGEA. PartyGaming admitted in the agreement that prior to 2006, the company operated in violation of quite a few laws to get US customers. The agreement prevented PartyGaming from being prosecuted and opened the way for the company to come back to theUSwhen legalization becomes a reality in the country.
Merger Opened Up New Opportunities
After the merger between Bwin Interactive and PartyGaming, the new company signed a few partnership deals. Agreements were signed by bwin.party with an intention to re-start its operations in theUSin the future. New partnerships were established with MGM Resorts and Boyd Gaming. 65% shares of the joint venture are currently owned by bwin.party, and Boyd Gaming and MGM hold 10% and 25% shares respectively. Bwin’s software is used by MGM to operate online poker rooms.
The joint venture opened up new opportunities for bwin.party as MGM and Boyd owns quite a fewUSland-based casinos at which bwin can run tournaments. MGM Resorts has stakes in total 18 casinos inIllinois,Mississippi,MichiganandNevada. 17 casinos are operated by Boyd acrossLouisiana,Illinois,Indiana,Mississippi,NevadaandNew Jersey.
Keith Smith, the CEO of Boyd Gaming stated that such partnership deals hold a lot of significance in a scenario where chances of online gambling being legalized in the US are high. The online poker market in theUSgenerates $6 billion yearly revenue on an average. MGM Resorts’ CEO, Jim Murren commented that in case online poker is legalized in theUS, strict laws should be enforced. This is because quite a few firms operating in the unregulated environment have damaged the industry’s reputation.
Bwin.Party has decided to sell its Ongame network to aUSfirm, Shuffle Master. The deal has been settled at €19.5m with a top-up payment of €10.0m. The CEO of Shuffle Master, Gavin Isaacs stated that Ongame, which was put up for sale since June 2011, is one of the leading poker networks in the world.
Party Poker – Second Largest Poker Room
At present, Party Poker is the second largest poker site in the world. Before moving out of theUSmarket, the poker room was the largest in the industry. The firm still has a solid player base, a little less than PokerStars.
The chief operating officer of bwin.party, Jim Ryan stated that unless online poker is legalized in the US, it is not likely that Party Poker will regain the status it had in the country, before the UIGEA was passed.
