Weekend readers of The Independent woke up to the interesting news that Empire Online is close to settling its legal dispute with PartyGaming. The deal would see PartyGaming pay Empire $200 million (GBP 114 million) for terminating the “skin” arrangement under which Empire players were directed to the same platform as those of its rival’s Party- Poker website.
Empire’s shares rose on rumours that its litigation with Party Gaming may be coming to a close, and the company subsequently issued a statement Friday which said: “Empire Online confirms that it is in advanced discussions regarding settlement of the outstanding litigation claim with PartyGaming and assignment of the company’s related skin activities to PartyGaming.”
The Independent quotes inside sources as revealing that PartyGaming would pay Empire about $200 million for its skin, the Empire Poker platform that was previously intertwined with PartyGaming. The site makes an estimated $13 million of profits a year with strong growth from Club Dice and Nobel Poker.
Empire has predicted that its 2005 annual profits will reach at least $50 million, with $37 million coming from Club Dice and Noble Poker. Both have been signing up new members at a rate of 23 percent per quarter.
Previous reports indicated that Empire would sue its rival in the courts of Gibraltar and would seek $500 million damages for lost business, and “injunctive relief” to force PartyGaming (Party Poker)to restore the skin arrangement. Although Party Gaming has yet to make a statement confirming the latest developments, it has in the past said that it would prefer an “amicable solution” to the bitter dispute.