PartyGaming dipped 0.1p to 279.3p. The online gaming company signed a five year deal to supply an online gaming platform for poker and casino games for Danske Spil, the Danish government controlled gambling and national lottery business. Despite the news, broker Collins Stewart issued a sell note on PartyGaming. Analyst Paul Leyland said:
We see Party's earnings coming under threat from three areas. First, regulating markets are likely to push the company into B2B deals potentially less attractive for market share, pooling and residual profit. Second, certain key markets could actually close. Finally, the need to support casino as a stand-alone product is likely to drive up marketing and content costs simply to hold revenue up. We see each of these playing out over 2010.
