Coral to leave Party Gaming / Skins

[Robby Box]

03-11-05 15:45

UPDATE 1-Gala to leave PartyGaming poker platform - sources

(Adds company, analyst quotes, background)
By Pete Harrison
LONDON, Nov 3 (Reuters) - Britain's Gala is set to move its
Coral Eurobet online poker operations away from the software
platform of PartyGaming <PRTY.L> in a move that would hurt other
Web sites using the platform, such as Empire Online <EOL.L>,
industry sources said.
Since October, PartyGaming has operated two software
platforms -- one for players on its own PartyPoker Web site, and
another for partners such as Coral Eurobet and Empire, known as
"skins", which use PartyGaming's software to power their own
poker rooms.
Players on PartyGaming's skin Web sites can play against
each other, and the skins have always relied on each other for
liquidity. The loss of a larger skin like Coral Eurobet would
hurt the other three by reducing their liquidity.
Gala declined to comment on the move, as did PartyGaming.
But PartyGaming Director of Corporate Communications John
Shepherd said: "In the first half, the skins, of which there are
four, contributed less than 4 percent of PartyGaming's poker
revenues."
"Our relationship with the skins has always been clear," he
added. "If it makes strategic sense for either business,
contracts can be terminated and we can part."
Analyst Greg Feehely at Altium Securities said Gala leaving
would be bad news for Empire, which said on Thursday it had
received a bid approach from PartyGaming.
"It's a very realistic possibility that Gala would want to
take control just as PartyGaming did," he said. "It's a further
unwelcome move for Empire, but the company's continued
independence looks unlikely anyway."
PartyGaming's shares were unchanged at 93 pence by 1424 GMT,
while Empire Online was down 1.7 percent at 113 pence.
((Reporting by Pete Harrison, editing by Tom Pfeiffer; Reuters
Messaging: pete.harrison.reuters.com@reuters.net; +44 207 542
7975))