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Guilty Plea Not Indicative

Party Gaming released a corporate statement on the heels of Dikshit’s guilty plea that emphasized that Dikshit’s decision to plead guilty to one Wire Act charge was an independent decision outside of the Party Gaming online casino gambling group’s approach to the negotiations with the US Department of Justice. Party Gaming’s statement noted that while one of the founding members had made a deal with the DoJ, Party Gaming as a corporation was still pursuing a clean slate in terms of the charges and will not enter into a guilty plea. The DoJ has charged the pre-UIGEA online casinos with violation of the 1961 Wire Act – a piece of legislation that has no specific and intended application to the internet gaming industry.

Some in the industry have hypothesized that Party Gaming’s settlement terms will likely far exceed those paid by founding member Dikshit. Party Gaming’s corporate statement though noted that the company is not prepared to plead guilty to illegal pre-UIGEA online casino gambling activities. The corporate statement noted, "On the basis of the discussions to-date, PartyGaming expects any settlement with the DoJ to involve a payment by the Company of an amount that is significantly lower than that reported to be paid by Mr. Dikshit."

The Party Gaming online casino gambling group though was also quick to note that while the company is nearing settlement terms with the DoJ, nothing has been finalized and decided and there is always a chance that the current settlement agreement both entities are working toward won’t hold. The plea agreement with Dikshit is actually very significant within the online casino gambling industry because it could set a precedent for high fines and probationary terms for some of the other companies still in negotiations with the DoJ, such as 888 Holdings.