PartyGaming today confirmed it is in talks with smaller rival Empire Online (EOL), as reported exclusively by the Guardian.

"PartyGaming confirms that it is in advanced discussions with EOL regarding the possible purchase of certain of its business assets and related operations," the group said in a brief statement.

It promised a further announcement "if and when appropriate".

Your after-tax income belongs to you. You are free to spend it, invest it, waste it, burn it, or tithe it--and none of that is any politicians’ business. But if some lawmakers have their way, soon you won’t be able to gamble your money away on the Internet.

In October, the Senate passed a bill enhancing port security, and attached to the bill is a title banning acceptance of credit cards or other payment instruments to process gambling transactions. President George W. Bush signed the bill into law on October 13.

Place your bets--just don't pay with a credit card.

When Congress specifically criminalized Internet gambling at the end of September by outlawing credit-card payments to the services, it failed to stop aspiring card sharks and delusional Oakland Raiders fans from parting with their paychecks, experts say. Offshore sites simply set up shop where U.S. law enforcers can't reach them, and domestic gamblers are finding alternative ways to pay them.

Online gambling firm 32Red has breached its loan agreement with the Royal Bank of Scotland due to its poorly performing sports book Bet Direct.

The company said in a statement, "As a direct result of poor trading experienced at Bet Direct, the company anticipates that the combined operating results for 32Red will fall significantly below current market forecasts for the year ending 31 December 2006."

Germany's federal states plan to ban internet gambling, according to draft documents to be discussed by the country's state premieres on Thursday.

Despite pressure from the European Commission to open up Europe's gambling market to competition, ministers from most states want to sign off on new rules aimed at protecting their lucrative monopoly as lottery operators.

Internet gaming is now the fastest growing segment of internet commerce, according to a report from Gamingpublic.com, an industry trade publication. Revenue in the sector is growing at a rate of 22 per cent per year.

Gamingpublic.com cited a Merrill Lynch study that concluded the global internet gaming market could reach – wait for it - $528bn annually by 2015.

A case in which online casino operators challenged a ban on internet gambling was thrown out of court last week. But experts question whether the judgement of the Pretoria High Court is enforceable.

It has also emerged that the National Gambling Board (NGB), one of the defendants, has submitted a report to the minister of trade and industry recommending the legalisation and taxation of internet gambling.

CAPE TOWN — Online and cellphone gaming will become legal for the first time in SA if a draft amendment bill adopted by the cabinet last week is finally passed into law.

The South African gambling industry has been frustrated by the length of time it has taken government to come up with regulations to legalise internet gaming.