PartyGaming Reaches $105 Million Agreement With USA

Saturday April 11, 2009

In a non-prosecution agreement, PartyGaming Plc, the company behind Party Poker, has agreed to pay $105 million. The settlement means that the USAO will not prosecute PartyGaming for providing internet gambling to US customers.

When the controversial Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006, gaming companies outside the US knew they might face possible court action from the US Department of Justice.

Prolonged discussion with The United States Department of Justice has finally brought an end to the Party Poker involvement with a non-prosecution agreement and a $105 million settlement.

This agreement, although expensive could be good news for PartyGaming. Evidence was immediate with shares trading up at 219 pence in London this morning.

With the settlement comes the removal of all possible lawsuits which will make Party poker and its subsidiaries much more appealing to other companies seeking to make deals. But perhaps the biggest advantage will be if the lucrative American market is re-opened to European competition.