There are once more reports in the press that Cashcade, the owners of online bingo sites Foxy Bingo, Cheeky Bingo and the online casino Get Minted are being sold, this time the reports are leaning towards Party Gaming as the purchaser. Speculation has been high for some months now that Cashcade’s online bingo and gaming portfolio would be sold off, the reason for which has been attributed in part to reported financial difficulties that 20% shareholder Independent News & Media are experiencing.
Party Gaming shaken but not stirred by US gambling fines
Party Gaming themselves have not been immune to financial problems after finding themselves on the wrong side of the US Department of Justice. The problems were the result of the change in legislation in the US regarding online gambling and although Party Gaming ceased trading in the US the state went after Party Gaming and their Directors in what some see as an unfair way. Party Gaming agreed to pay the US authorities $105m in fines at the beginning of April 2009 and Anurag Dikshit the co-founder was fined $300m. The Party Gaming fine payments will be paid in instalments until 2012.
888 Holdings loss could be Part Gaming’s gain
It therefore shows how well Party Gaming are performing if they are now able to buy Cashcade for the £100m that has been reported in the Times and Reuters this Sunday. There is no official confirmation from Cashcade, whether Foxy Bingo and Get Minted will now be sold to Party Gaming but the Times article claims the deal to sell Cashcade’s online bingo and gaming portfoliohas now been done. Cashcade’s Foxy Bingo currently uses 888 Holdings software so how a deal to sell to Party Gaming would affect this is unclear, although most industry insiders feel that a platform change would without doubt follow if Party Gaming did purchase the Cashcade online bingo and gaming portfolio.
Regular readers of Bingo Hideout news articles will recall our story of 25th May when the speculation was that 888 Holdings were regarded by the Telegraph to be the most likely purchaser of the Cashcade’s online bingo and gaming portfolio which includes the Cheeky Bingo site. However after much press speculation a denial was soon issued from the Simon Collins the MD of Cashcade that any such deal was happening. Since then various stories have been published regarding prospective purchasers – and in fact if it was true that the Cashcade online bingo and gaming portfolio would be sold at all.