The Guardian newspaper reports that PartyGaming is to lose its coveted
place in the FTSE 100 index following the serious decline of its shares
on the introduction of anti-online gambling measures by the US Congress
last week.
Tomorrow will be its last day as a FTSE 100 member, after which it
will be relegated to the FTSE 250 index.
Party Gaming became the first and only online gaming company to achieve
the elite club of Britain's 100 biggest companies little more than
a year ago, as its shares surged on the back of huge growth in the
online gaming market.
But the US clampdown on internet gambling financial channels has ravaged
shares of PartyGaming, The Guardian reports. More than GBP 4 billion
was wiped from the stock market value of the sector last week with
PartyGaming alone losing more than GBP 2 billion.
There was further fall-out in the sector this (Monday) morning as
much smaller rival World Gaming called a halt to trading in its shares.
WG directors said that, following legal advice, they had requested
the share suspension "...due to a fundamental uncertainty
over its ability to continue trading". Last week the company
warned that it might be "in technical default"
of its loan conditions.