Online casino and remote gaming software provider, Chartwell Technology has announced that a preeminent agreement made with online bingo software solutions developer, Parlay Entertainment Inc. to merge company interests has been called off due to recent trends that are directly imposing an uncertain future for unbeknownst sectors of the online gambling industry.

Having entered into an agreement by way of a Letter of Intent signed August 30 of this year, both company's now prefer to monitor a volatile U.S. market and how that may affect business abroad.

Chartwell and Parlay have a close relationship with one another, and so therefore the L.O.I. did not contain terms and conditions for breaches of agreement, although Chartwell has agreed to pay for a portion of Parlay's expenses in preparing and carrying out the agreement to its status prior to being terminated. A termination of all prior merger discussions has been mutually agreed upon by both parties.

In regards to the agreement itself, Chartwell and Parlay were making way to merge both companies into a diversified software development company with special interest in online casino gaming and internet bingo. However, since both companies extensively depend on U.S. based players, Chartwell contended that in light of the recent Unlawful Internet Gambling Act, they would not be able to obtain a fairness option corresponding to the agreed share exchange ratio.

In the meantime, both companies will continue nurturing their preexisting relationship, and will follow up on opportunities that were discovered as a result of negotiations, and which could potentially still come about while remaining distinct entities.