Anurag Dikshit’s Sale of Party Gaming Stock Receives Mixed Reaction, by Dan Cypra - 25th October 2009

One of the major poker headlines this week was the news that Party Gaming Cofounder Anurag Dikshit would divest himself of nearly 114 million shares of the company’s stock, which is traded in London under the symbol “PRTY.” Now, the industry has had a chance to react.

The internet gambling think tank sported mixed reactions to the news, as Dikshit’s departure meant that a man who admitted to violating U.S. law in a New York courtroom one year ago would no longer hold any interest in the company. Interactive Media Entertainment and Gaming Association (iMEGA) Chairman Joe Brennan told Poker News Daily, “The thing to take away is that this is probably good overall for Party Gaming. When you have one of their founders pleading guilty, if and when things start to get normalized in the U.S. and Party Gaming comes into the market, they need to clear it off the books. The fact that he’s exiting the company is good for its future.”

When internet gambling will be legalized and regulated in the United States is anyone’s guess. Congressman Barney Frank (D-MA) introduced HR 2267 in May as one solution. The bill outlines a framework for the explicit legalization of the industry and, although the measure is up to 62 cosponsors, it has not yet been scheduled for markup in the House Financial Services Committee.

On how members of Congress and others outside of the industry would react to Dikshit’s exit, Brennan explained, “If Dikshit leaving Party Gaming can be a benefit to that company, I would say that it does the same broadly for the industry.” Financial analyst Nick Batram told Bloomberg that Dikshit’s departure meant that Party Gaming “may also find it easier to raise funds from institutional investors rather than the founders for large sports gambling acquisitions.” The Wire Act of 1961 has historically been interpreted to mean that online wagering on sports is not permitted in the U.S.

Dikshit will purportedly turn over the proceeds of his sale, which will likely total more than ₤188 million, to his charitable foundation. On the TwoPlusTwo online poker forums, posters questioned Dikshit’s charitable motives: “If he donated to an established charity that could not be mistaken for a front, then that would be impressive,” one skeptic noted. Some have speculated that tax benefits are the real reason behind his actions. Brennan told Poker News Daily, “He wants to get out of the business and focus on his charitable endeavors.”

The sale of two-thirds of Dikshit’s stake sent shares of Party Gaming plummeting. Trading above 284 pence on October 19th, the stock dove to 240 pence in 24 hours, a dip of 15%. PRTY closed trading on Friday on the London Stock Exchange fetching 243 pence, 135 pence above its asking price one year ago.

An article in the Financial Times summed up the reaction from most of the industry: “The truth, however, is that while the distancing of Mr Dikshit can’t be bad for Party Gaming, it is still frustratingly unclear what the odds are on a successful return to the U.S. market.” In five weeks, the financial services industry in the United States must fall into full compliance with the regulations of the Unlawful Internet Gambling Enforcement Act (UIGEA). The impact of the December 1st deadline remains to be seen, but the Poker Players Alliance (PPA) recently authored a letter to U.S. Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke asking for the UIGEA’s regulations to be delayed by one year.

Party Gaming Cofounders Ruth Parasol and Russ DeLeon, a husband and wife team, have not yet announced their intentions to sell stock or formulate a plea agreement with the U.S. Government. (Credit: Poker News Daily)

Media Man Australia Profiles

PartyGaming

Politics

Schwarzenegger may take axe to TVs - 18th October 2009

LARGE-SCREEN television sets could be banned within weeks in California in an attempt to cut the state's rising energy bill.

Governor Arnold Schwarzenegger supported controversial proposals by California's energy commission to impose strict energy consumption limits on TVs with screens more than 101 centimetres wide.

The commission claimed the estimated 35 million television sets and related gadgets in the state accounted for about 10 per cent of household energy consumption.

Large LCD or plasma screen sets use up to three times as much power as traditional models.

Manufacturers were reported to have said little to sway the commission's opinion.

Media Man Australia Profiles

Arnold Schwarzenegger

California

Green News Media

Television

Broadcasting

Politics

Political insiders launch attacks on Linda

The following news has just been released by Jodi Latina, Director of New Media, Linda McMahon for Senate 2010.

It seems hard to believe that it's been less than a month since Linda announced her candidacy for the U.S. Senate. Since then, support for her campaign has been growing at a remarkable rate. Connecticut voters know Linda is the one Republican candidate in this race who can beat Chris Dodd and make Washington work for ordinary people instead of the special interests.

As is often the case when a political outsider begins shaking up the system, the career political insiders are fighting for their survival. That's no surprise. Their careers depend on protecting the status quo. What is shocking, however, is that Linda's political opponents -- just about all of whom are part of the political establishment -- are launching negative personal attacks so early.

It appears her primary opponents are so concerned about her candidacy that they are engaging in a seemingly coordinated negative attack on her. What are they afraid of?

Several weeks ago, they attacked Linda for not voting in a few recent elections. But then the Hartford Courant reported that the very politicians attacking Linda had also missed numerous elections. In fact, her most vocal opponent himself missed at least 11 local elections! The difference is that Linda was honest from the outset, putting her record on Linda2010.com for all to see. She acknowledged her missed votes were inexcusable, and she took complete personal responsibility -- unlike the career insiders who did their best to cover up their records.

It's sad really.

Now the political insiders are at it again. They are claiming Linda is not a real Republican because, as CEO of a nonpartisan, publicly traded company, she gave political contributions to Democrats as well as Republicans. The fact is Linda is a fiscally conservative Republican, and as CEO of WWE, she gave $70,700 in federal contributions to Republicans, $34,100 to Democrats and $2000 to Independents, since 1980.

Linda has helped elect far more Republicans than Democrats, but they didn't bother to tell you that. Linda has helped Republican mayors, Governor Rell, Republican Members of Congress, Republican Town Committees, the Connecticut Republican Party and the list goes on... Linda has it all posted online for everyone to see.

Linda refuses to play the old game in which politicians divert attention from their own records with non-stop negative attacks. The career political insiders started going this negative so early because they're obviously terrified of Linda's candidacy.

So much for Ronald Reagan's 11th Commandment...

Linda's support is growing in leaps and bounds because she's a different kind of candidate who isn't beholden to special interests and isn't afraid to be open and honest -- even when the truth is inconvenient. She's not taking a penny of special interest money, because the only interest groups she cares about are ordinary people.

Thank you for supporting Linda. Spread the word on Twitter; tell your friends through Facebook.

Together we will take Washington back from the special interests and put people back in control.

Media Man Australia Profiles

Politics