PartyGaming holds US govt showdown talks

PartyGaming is holding discussions with the US Department of Justice to explore the possibility of a re-entry in to the US in wake of the Unlawful Internet Gambling Enforcement Act, which was passed in October last year.

The world's largest internet poker company has said it is "voluntarily" responding to a request for information call that was issued by the US Attorney's Office for the southern district of New York.

While PartyGaming has said that it is too early to consider the possibility of any outcome, the Gibraltar-based company did mentioned that the way forward is for the US to offer regulated online gaming that is run by a notable operator.

In a statement, PartyGaming said: "Online gaming should be offered by regulated, reputable operators. This remains the right approach to the industry sector."

PartyGaming had to fold out of its US operations when the act was passed, taking an exceptional charge of $250m as it left the table. Insiders have said the group is confident of being able to agree upon a financial settlement to defuse possible actions that are related to the company's participation in the US before October 2006.

Meanwhile, rival company 888 Holdings is expected to make an announcement about its position on the possible talks with the US Authorities later today.