| | |  | Last Updated: Wednesday, February 27, 2008 |  | | | Online Casino Operator Takes Gambling Matters to Court
- Wednesday, 7 Dec 2005
Empire online, a massive internet gambling site, has lost over half its market value since it floated its shares on the stock market earlier in the summer. Empire Online said on Tuesday it had started legal proceedings in Gibraltar High Court against its former partner Party Gaming and it is turning out to be an online gambling feud that many in the industry are watching closely.
It all started when the online gambling operator Party Gaming made a strategic business decision to cut off white label skin sites. "The company seeks substantial damages and injunctive relief from Party Gaming," Empire said on Tuesday, adding that it was currently holding "confidential arbitration proceedings" with a Party Gaming subsidiary.
This action had a detrimental effect for the online gambling operator Empire and its stocks took a big dive on the market. Most analysts saw Party Gaming’s move as an attempt to squeeze the skins, which were both allies and competitors, and investors feared Empire’s remaining players would slowly migrate to the Party Poker gambling site. It is yet to be seen how this online gambling feud will play out.
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