<pre>Who knows what they might do with your funds once this is signed into law?

from http://www.investegate.co.uk/Article...0020701037654J

PartyGaming Plc
02 October 2006

2 October 2006

PartyGaming Plc

United States legislation

On 30 September 2006, the United States Congress passed The Safe Port Act. That
measure also contained certain provisions known as the 'Unlawful Internet
Gambling Enforcement Act of 2006' that will affect the processing of payments
between US customers and online gaming companies, including PartyGaming, that
are publicly traded and licensed and regulated in respected jurisdictions.

The Act is expected to be signed into law by President Bush within the next two
weeks. If signed into law, it will immediately make unlawful the receipt by a
gambling business of proceeds or monies in connection with unlawful internet
gambling. The Act does not clarify the definition of unlawful gambling.
However, as the first piece of Federal legislation dealing explicitly with
internet gaming, it does make clear that the US government intends to stop the
flow of funds from Americans to online gaming operators through criminal
sanction. The Act also asserts that, under US law, a wager must be permitted
under the laws both of the customer's place of residence and that of the
operator.

After taking extensive legal advice, the Board of PartyGaming Plc has concluded
that the new legislation, if signed into law, will make it practically
impossible to provide US residents with access to its real money poker and other
real money gaming sites. As a result of this development, the Board of
PartyGaming has determined that if the President signs the Act into law, the
Company will suspend all real money gaming business with US residents, and such
suspension will continue indefinitely, subject to clarification of the
interpretation and enforcement of US law and the impact on financial
institutions of this and other related legislation. Access to PartyGaming's
online gaming sites for the Group's US free play customers will be unaffected.
Access for all of PartyGaming's non-US customers will also be unaffected.

The Group's strategic focus remains on developing its existing markets outside
of the US and on developing new markets and products. Should activities in the
US be suspended, the Directors will also seek to re-align the Group's cost base
to accommodate the changed business environment. However, any such suspension
would also result in the Group's financial performance falling significantly
short of consensus forecasts for 2006 and 2007.

Mitch Garber, Chief Executive Officer of PartyGaming, said:

'This development is a significant setback for our company, our shareholders,
our players and our industry. While US horse race betting, state lotteries,
fantasy contests and certain other online gaming activities have been
exclusively protected under the new law, we are disappointed that the popularity
and skill of poker in particular have not also been specifically protected. The
Board respects the laws of the US Government, and will continue to analyse their
applicability, but also continues to believe that a regulatory framework for
online gaming, including poker and casino gaming is the only sustainable long
term solution.

'We have a substantial gaming business outside the US, one that is highly
profitable and growing rapidly on one of the most technologically advanced
platforms available. In the first half of 2006 our non-US business generated
revenues of $150 million, a 151% increase over the comparable period in the
previous year. Gaming on the internet is already a popular form of
entertainment for millions of adults and we will continue to expand our business
into new territories, offering fun, responsible and friendly competition in a
safe and secure environment for customers around the world. PartyGaming is by
far the largest online gaming company in terms of non-US business and liquidity
and we intend to focus on and increase our advantage in that area.'

A further update will be provided with the Q3 KPIs on 20 October 2006.

Contacts:

PartyGaming Plc +44 (0)20 7337 0100

Peter Reynolds, Director of Investor Relations
John Shepherd, Director of Corporate Communications

Financial Dynamics +44 (0)20 7831 3113

Edward Bridges / Juliet Clarke

This announcement includes statements that are, or may be deemed to be,
'forward-looking statements'. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and
circumstances. Forward-looking statements may and often do differ materially
from actual results. Any forward-looking statements in this announcement reflect
PartyGaming's view with respect to future events as at the date of this
announcement. Save as required by law or by the Listing Rules of the UK Listing
Authority, PartyGaming undertakes no obligation publicly to release the results
of any revisions to any forward-looking statements in this announcement that may
occur due to any change in its expectations or to reflect events or
circumstances after the date of this announcement.

This information is provided by RNS
The company news service from the London Stock Exchange

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