European-based online gambling operators have recently been very careful about their positions in the American market. After the UIGEA was enacted in 2006, many operators form the UK faced legal action for continuing to offer their services to American residents. One such company was PartyGaming, whose forced exit shocked the online gambling world.
Now, PartyGaming is taking another approach to infiltrating the American online casino market by entering into negations with some of the country’s biggest land-based operators. The company seems to be taking a lesson from PlayTech, who secured its place in the American gambling market by partnering with the American-based developer Scientific Games. By taking this approach, European companies can avoid legal intervention by the American government.
It also seems to be an efficient approach, as recent intra-state online gambling legislations require servers to be based within the state. If PartyGaming partners with a name like Caesars or MGM, the company would create a land-based presence with established American brands while avoiding any legal ramifications.
As a federal law regulating the online gambling industry still seems to an impossibility, it will be up to individual states to legalize the activity. If this becomes the case, PartyGaming will be well-positioned to appeal to American online gamblers.