Neither EOL nor Intercontinental accept bets from customers in the United States, where the judicial authorities have cracked down hard on the industry and new laws have been passed to ban online gaming.

Despite the loss of its US business, the group's overall revenues remain healthy. However, PartyGaming revealed last year that the restructuring of its operations following the passage of anti-online gaming legislation in the US in October is likely to cost in the region of $250 million. In response, the company's strategy has been directed towards broadening its product offering and making "opportunistic" moves in the mergers and acquisitions market.

The consideration for both new acquisitions is to be satisfied upon completion by the issue of 115,193,842 new PartyGaming shares. PartyGaming expects the businesses and assets being acquired to generate clean EBITDA of at least $8.5 million, comprising $6.0 million from EOL and $2.5 million from Intercontinental, and to be earnings-enhancing in 2007.

Online gaming websites operated by EOL and Intercontinental that are being acquired by PartyGaming include: NoblePoker.com, Clubdicecasino.com, EnterCasino.com, MissBingo.com, FairPoker.com, and MagicBoxCasino.com. Subject to completion a software licensing agreement will also be entered into with Playtech, which is one of the world’s leading companies in its field and hosts the sites being acquired from EOL and Intercontinental.

Mitch Garber, Chief Executive Officer of PartyGaming, said:

“These acquisitions represent excellent value for our shareholders and are consistent with our strategy. They bring incremental EBITDA and strong management with excellent marketing skills that will help us to accelerate our promotional plans for each of our individual products, particularly in casino which will continue to be spearheaded by PartyCasino.

"The addition of a number of well known secondary brands, supported by the agreement with Playtech, will provide opportunities for cross-promotion, increasing customer choice and satisfaction and maximising the long term value of current and future players.”