PartyGaming Confirms Talks To Buy Empire's Online Gambling Assets

Online gambling firm Partygaming has confirmed it is in talks to buy the gaming assets of smaller rival Empire Online.

Analysts said the deal could be worth about $40m (£20.4m), and would probably include Empire's Noble Poker and Club Dice Casino websites.

Shares in Partygaming rose 2.5% on the news in mid-day trading in London.

The company has been refocusing its business after it pulled out of the US market following the tightening of anti-gambling laws there.

Partygaming previously made 75% of its earnings in the US.

Analysts have been expecting a wave of consolidation in the industry ever since the US moves began.

Empire said it planned to become an investment company after selling off its internet gambling assets.

The firm's Online Casino generated revenues of $30.2m in the first six months of 2006, while its Online Poker site made $8m.

Shares in Empire were down almost 2% in lunchtime trading on the London Stock Exchange.