The group decided to leave the United States토토사이트 market, even though it would harm their revenue in the short term. This would have resulted in their American players being homeless.
This had a significant effect on the corporation from the point of view of both its valuation and its liquidity. The market responded appropriately, sending the company’s stock tumbling 60% overnight and even further in the following days, bringing PartyPoker to lows they had not seen since the company’s inception. The company cut off three-quarters of its incoming revenue overnight, and the market reacted accordingly.
The action that PartyGaming made caused widespread 토토사이트consternation throughout the industry. Other publicly traded gaming businesses soon followed, but others, like PokerStars, chose to stay in the United States, where they have seen significant revenue increases.
As a consequence, PartyGaming needed to expand into new markets and provide new goods to win back the faith of their shareholders and restart the process of growing their business.
Even before the enormous setback the company suffered in October 2006, PartyGaming had experienced several important shifts in its operations. To begin, Dikshit and Bhargava had both resigned as members of the board of directors of the company; they were eager to get started on other endeavors.
Midway through 2006, the company unveiled a new piece of software that provided access to games other than poker. This allowed players to access various games with the ease of one centralized account rather than having to create separate accounts for each game.
The corporation also appointed a new chief executive officer. Jim Ryan, who had most recently served as the CEO of Excapsa (Ultimate Bet) and the Chief Financial Officer of casino software company CryptoLogic, has been brought on board.
His mission was crystal clear: develop a plan to protect the PartyGaming brand while simultaneously identifying new opportunities for the company to expand its operations.
The difficulty with this approach was that there were already an excessive number of gaming companies operating in the European market. Gambling was ingrained in the culture of Europe. Therefore players and operators benefited greatly from the region’s more favorable legal environment.
It was evident that PartyGaming faced an uphill battle against the companies already established in the market when they launched their sportsbook. However, most of the gambling revenue came from sports betting.
Making a Clean Sweep of Things
The aftermath of the events in the United States in 2006 needed to be resolved before the corporation could move forward with any new commercial endeavors. Anurag Dikshit settled with the Department of Justice in the year 2008; in exchange for all charges being dismissed against him, he paid a fine that was greater than 300 million US dollars.
However, this was a personal settlement, and it had no bearing on the charges brought against the firm. As of now, he is the only founder who has consented to a settlement being reached.
Jim Ryan had been negotiating with several parties regarding the possibility of company mergers. Still, before any of those mergers could take place, he was required to negotiate with the Department of Justice as well. In 2009, after attorneys had spent months going back and forth on the matter, it was finally decided that a settlement would be reached between PartyGaming and the Department of Justice.