Following the announcement released by the company on October 3 relating to developments in United States legislation, the Directors of the online gambling software provider announced that, following discussions with all of key parties concerned and having taken legal advice, they have requested the trading of the company\’s shares be suspended with immediate effect due to a fundamental uncertainty over the company\’s ability to continue trading.
World Gaming shares topped 200p last year and were still trading at around 80p in September when the company entered discussions over a merger with Sportingbet, but since then the price has crashed to 8.5p, giving the World Gaming a market value of just £5m.
As a result of the plunge of online gambling shares, PartyGaming will be taken off the FTSE 100 index and relegated to the FTSE 250 index, where it will take 888 Holdings\’ place. The online casino will be listed in the FTSE SmallCap index.
Empire Online has announced that Lord Steinberg will step down as Chairman of the Board from the end of October 2006. “In spite of the regulatory uncertainty that currently surrounds the online gaming industry, I believe the time is right for me to move on. I leave Empire Online in good hands, with a strong cash position from which to progress to the next stage of its development,” commented Lord Steinberg.
A source close to the online gaming company revealed Reuters that Empire is looking to invest its $250 million cash pile away from the troubled online gaming sector.
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