EMPIRE ONLINE looks close to winning a large payout from its bigger rival PartyGaming in a cyberspace poker room row where the stakes have been talked up as high as $1bn (£575m).

After a court hearing last week in London, peace may have broken out between FTSE 100 company PartyGaming, the world’s biggest internet poker operator, and Empire Online in a row that has highlighted the cut-throat industry of online gaming.

Empire had an arrangement allowing its members to play in PartyGaming’s more popular poker rooms - a so-called ’skin’ agreement - but this was rescinded by PartyGaming in October.

Empire sued for ’substantial damages’, claiming breach of contract and alleging PartyGaming made subsequent attempts to poach Empire customers.

In a statement today, Empire said it is in ‘advanced negotiations’ to end litigation. Indications are that PartyGaming may offer to buy out the ’skin’ operation in a transaction likely to be way below the size of the compensation claims.

(via This is Money)

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