The week that was in the world of British gaming financials began with reports of PartyGaming looking to purchase Austrian Internet betting company BWIN. Sources say PartyGaming’s previous purchase of Gamebookers back in August had exceeded expectations, with the company continuing to look elsewhere for possible acquisitions (including smaller online casino/bingo operators). For their part, a BWIN spokesman would only admit that while consolidation is the buzz of the entire British gaming industry in the wake of the United States effectively banning online gaming, a sale to PartyGaming is not imminent. PartyGaming continues to trim fat within the organization, with a spokesman noting that – in India alone – they dismissed 800 of 1,750 staff in an effort to reduce its cost base. PartyGaming closed at 28.75p Friday on the London Stock Exchange, with BWIN down to 15.24 Euros on the Vienna Stock Exchange.

One of PartyGaming’s rumored targets – 888 Holdings – has lost the eye of the company, however, with reports surfacing later in the week that Ladbrokes has now entered into preliminary discussions for a £470 million takeover. Ladbrokes‘ chief executive has already had discussions with 888’s chief executive (and former Ladbrokes executive director) along with other high-ranking officials. While no decision in terms of a proposal has of yet been made, Ladbrokes has confirmed their interest. Meanwhile, 888 would only add that they are holding discussions with a number of third-parties. Ladbrokes closed up Friday at 421.25p on the LSE, while 888 Holdings was down at 122p.

Elsewhere, William Hill announced this week that chief operating officer and executive director Tom Singer has stepped down from the company’s board following a review of the outfit’s key executive roles. Singer was at the helm of William Hill for six years in total. The group closed out a strong week on the LSE by closing up 9.50p at 645p per share.

Finally, BetOnSports has sold back its Asian-facing online sportsbook Hooball to the original vendors for a reported $2.25 million. Terms of the deal also included the purchaser agreeing to cancel $5 million of outstanding payment considerations as well as a return of four million BetOnSports shares that were issued as part of the original purchase. Following the U.S. Department of Justice’s Temporary Restraining Order (TRO) in July against BetOnSports, the company had yet to even assume full control of the Hooball operation. It was originally bought by BetOnSports in May, doubling the company’s Eastern market presence. The company has said its other Asian-facing brands are continuing to trade as-per-normal.

- Rex Harris

Betcorp, the Melbourne-based online gambling company is the latest group to suspend its operations in the United States in the wake of the new Unlawful Internet Gambling Enforcement Act signed by US president George Bush.

Although the company continues to trade with the customers of 87 other countries, a spokesman announced it had suspended the accounts of US residents with immediate effect in response to the enactment of the new law. Following the arrest of two high profile gaming executives, Betcorp had already labored through the fall of share prices in anticipation of the incoming measure. The company last traded on Friday at 45 cents, a drop-off of 75 percent since the Oct 2 announcement by US Congress.

The company which is set to de-list from the Australian Stock Exchange, has announced that it plans to concentrate its interests with its British operations. Despite the law excluding wagering on lotteries and horse racing, Betcorp announced it has cut its scale of operations by ceasing US marketing and slashing its workforce by approximately 33 percent.

The new US law prohibits credit card companies and financial institutions from making or taking payments from online gambling sites.

-Danny Davis

The new law restricting internet gambling in the United States continues to send shock-waves throughout the industry.

London-based Leisure and Gaming and Fairground Gaming have joined the ranks of companies that have or are on the brink of suspending operations in the US due to Congress’s decision to ban financial institutions from processing gambling transactions. A third company, FireOne also announced yesterday that it will cease operations effective on the day the new law takes effect. FireOne trades shares on the Alternative Investment Market. With the majority of the industry’s revenues racked up from its US customer base, the ban has hit the industry with brute force.

World Gaming announced Monday that it has ceased share trading in light of the ban, citing a loss of 95 percent of its revenue. While admitting it may be in breach of loan conditions, the company asked for trading to be suspended due to its “fundamental uncertainty over its ability to continue trading.� While Fairground fell from 8.5p to 14.5p, it plans to carry on operations despite the fact that the US fallout has wiped out 70 percent of its regular clientele. Other figures yesterday saw Leisure and Gaming rise from 0.75p to 8.75p, while FireOne lost 17.5p to 50p. Although Leisure and gaming is gearing its focus toward its domestic and Italian interests a decision on whether to sell or suspend its US operations are imminent.

The Unlawful Internet Gambling Enforcement Act is slated to be signed off on in a matter of weeks by US President George Bush.

-Danny Davis

The proverbial ghost of disgraced-lobbyist Jack Abramoff may have led to the passing of the Unlawful Enforcement Gambling Act, according to a report from Financial Times. Reportedly, Congressman Bob Goodlatte frightened fellow Republican colleagues in the House of Representatives when introducing his anti-gaming legislation back in February, sending each one a letter claiming, “This is the bill Jack Abramoff does not want you to sign.� The mere invocation of the once-powerful Abramoff (who has since plead guilty to corruption charges) re-energized criticisms of online gambling, according to one Washington lobbyist, noting the bill had stalled for the most part until Abramoff’s guilty plea after successfully leading a charge on behalf of eLottery against an earlier version of Goodlatte’s bill. The desire by lawmakers to prove their independence from Abramoff’s biggest cause in Washington ultimately paved the way for passage of the Act.

It was other forces entirely, however, that allowed the bill to be attached to an unrelated port security bill – as well as it passing only hours before lawmakers left Washington to campaign for November’s mid-term elections – specifically, Senate Majority leader Bill Frist chief among them. After initially attempting to attach the bill to defense legislation (only to be rebuffed by Senator John Warner, chairman of the armed services committee) Frist then latched onto the port security measure. Dr. Frist’s motive for the move is speculated to attempt to curry favor with conservative voters ahead of an expected presidential run in 2008, as well as that of fellow lawmaker Jim Leach, on online gambling critic and Iowa Republican.

- Rex Harris

 Less than a week after the US government announced new legislation effectively banning online gambling, Trinidad is moving forward with a similar agenda.

In a move that comes on the heels of a recent ban on casino slot machines, conservative Prime Minister Patrick Manning alleges that gambling in any form strains family relations and encourages the proliferation of vices. Manning would also like ax the country’s national lottery as well. While commanding majority support in the twin island country that also includes oil rich Tobago, passage of an online gambling ban is assured.

Saying that gambling activities are of great concern to his government, Manning has yet to set a timetable or manner of enforcing the impending anti-gambling measure. In crushing the multi-billion dollar online gambling trade in their country, the US will halt banks from accepting internet gambling transactions including the use of credit cards, electronic fund transfers and checks. The shunning of the online gambling trade by Trinidad is seen as ironic considering many of the industry’s largest companies operate in the Caribbean.

-Danny Davis