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It is believed by many that the intention of the Untied States government was to break Party Gaming as a message to other online casinos.  However, it does not look as though this most recent law suit will be enough to do the trick.  Although 2008 saw Party Gaming co-founder Anurag Dikshit plead guilty to breaking online gambling laws in the United States, Party Gaming still enjoyed a revenue increase of 3 percent over last year.  The performance of Party Gaming online casinos largely contributed to the success of the company.

Party Gaming does not believe that Dikshit’s guilty plea will have any effect on the current settlement negotiations with the United States.  As negations come to a close, Jim Ryan, Chief Executive Officer of Party Gaming, seems pleased with the process.  According to Ryan, “good progress” has been made toward an agreeable settlement. 

“We believe there will not be any criminal plea against the company or any of its former directors,” stated Ryan in response to a question on the progress of the settlement negotiations.

Dikshit agreed to pay a $300 million fine for violating the United States law against online casinos.  It is unlikely that Party Gaming will be forced to pay anywhere near that sum in the final agreement.  Analysts believe the final payment is likely to be about half that amount, somewhere in the $150 million ballpark.   

Party Gaming’s dispute with the United States had less to do with online casinos and more to do with online poker.  After the passage of the Unlawful Internet Gambling Enforcement Act, Party Gaming continued to offer Party Poker to American players.  Many people, including US judges, do not feel the law applies to poker; a game widely regarded as a game of skill.

 

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