PartyGaming pay off the US DoJ
PartyGaming, the online gaming giant, has announced this morning that after months of discussion they have come to an agreement with the US Department of Justice that potentially puts in place the most lucrative gaming market in the world.
Party, which uprooted from the US after UIGEA was implemented in October 2006, agreed to pay $105 million for a Non-Prosecution Agreement with the US Attorney's Office for the Southern District of New York (USAO).
The agreement terms state that the USAO will not prosecute PartyGaming in matters related to UIGEA. PartyGaming has also accepted a ‘Statement of Facts’ for their operations before the UIGEA came into force in 2006, admitting for the first time that before October 2006, it targeted US citizens, thus subsequent banking transactions that were "contrary to certain US laws."
The $105 million will be paid in eight half-yearly installments until 2012.
PartyGaming, safe from prosecution because of the agreement, has also agreed to continue restricting US customers from using their services to abide by the UIGEA. “The resolution of our position with the US authorities marks an important day for PartyGaming,” said PartyGaming CEO, Jim Ryan. “It has been a long and complex process but we have reached an amicable solution with the USAO that makes commercial sense for our business and is in the best interests of shareholders.” Indeed, as US authorities pressed hard for the repatriation of all profits made by overseas operators in America and jail terms for some senior management and founding shareholders.
But since a compromise was reached, shares are expected to rise as the news of this agreement filters through to investors.