Party Gaming - Empire Online dispute settled

The bitter Party Gaming vs Empire Poker feuding came to an end this week with the announcement that Party is to pay $250 million (GBP 144 million) in cash to Empire Online to settle litigation between the online gambling companies. The deal will in effect see Party Gaming acquiring the Empire sites that originally fed its operation.

The two companies had been locked in dispute since last December when Party Gaming switched players to an exclusive and improved version of its site, leaving Empire skins on the old platform and detrimentally affecting the smaller company's profits.

Empire, which now uses its own Noble Poker brand, said it would "consider carefully" how to use the $250 million windfall, but CEO Noam Lanir hinted that it may be used to fuel expansion plans. At this Online Poker room, you can see the glamour of the real cards game by playing it online.

"This was a tough-but-necessary period in our development; we did not give up and we emerged stronger," said Lanir, who founded Empire Online. "We anticipate $37 million in profit this year from our existing business. The PartyGaming settlement will help support our efforts to enter into the European and Far Eastern Markets."

Empire Online reported positive results in the fourth quarter of 2005, due in part to the success of their other online properties, Club Dice Casino and Noble Poker.

Party Gaming's announcement said that there were a number of advantages to the settlement, including:

* Acquisition of the EmpirePoker.com skin

* Further consolidation of the group's strong market position in online gaming

* Conclusion of the skin strategy ahead of launch of fully-integrated, multi-gaming platform

* It ensured the withdrawal of all legal claims by Empire Online Limited

* Expected to be earnings enhancing in the current financial year

Richard Segal, Chief Executive of PartyGaming, said: "This acquisition brings our skins strategy to a close and consolidates our leading position in online poker ahead of the launch of the fully-integrated, Party-branded platform. The introduction of Blackjack last October marked the beginning of our cross-selling strategy; the integrated platform will enable PartyGaming to take the cross-selling of games to a new level."