PartyGaming was one of the founding companies when it came to online gambling. The company was one of the largest in the world when its executives ran into legal trouble for offering an online gambling portal for US gamblers. Now, with the legal troubles in the rear-view mirror, the company is poised to return to the largest online gaming market in the world.
In a stunning announcement, agreed on Monday to partner with Bwin.party Digital Entertainment. The companies will form a union and bring online poker to US customers as soon as the current federal laws in the country are changed. Bwin.party is the company that was formed earlier this year when PartyGaming and Bwin Entertainment merged.
The announcement Monday assures that MGM and Boyd will both be among the pioneering companies to bring regulated online gambling to the US. Lawmakers are in the process of debating bills that have been proposed that would regulate Internet gambling in the US for the first time ever. The first step in that process occurred last week when a House subcommittee held a hearing on the issue.
This year has been full of gaming companies aligning themselves with foreign online gaming groups. Wynn Resorts, owned by Steve Wynn, changed their stance on Internet gambling earlier this year when they announced a partnership with PokerStars. That partnership, however, was terminated shortly after the US Department of Justice indicted executives of PokerStars, Full Tilt Poker, and Absolute Poker.
Although Wynn backed out of the deal with PokerStars, US gaming companies continued to seek foreign companies with experience in the online gambling industry. Bwin.party is considered to be the largest publicly traded gaming site in the world, which made the decision to partner easy for both Boyd Gaming and MGM.
Las Vegas gaming companies have long been opposed to any form of online gambling regulations. That stance changed drastically after the 2008 economic recession. Wynn, Las Vegas Sands, and MGM all started to discus openly the opportunity to increase revenue through online casinos. Many states have started to explore the option of online gambling regulations, with sites only allowed to offer gambling to residents of the particular state.
Caesars is the first US company to actually launch an online casino. Caesars has several online casinos operating in jurisdictions where online gambling is regulated, and the company is in a position to enter the US market if, and when, the laws change.
As for the individual states authorizing online casinos, it is an option, but Murren would prefer that federal lawmakers close the deal.
“Federal legislation is a vastly better solution,” said Murren.