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Wire Act Sticks for Online Casinos

The announcement that one of Party Gaming’s founding members, Anurag Dikshit, actually accepted a plea agreement related to the US’s archaic Wire Act legislation is really a turning point for the US Department of Justice. The DoJ is consistently attempting to charge several online casinos and executives with criminal charges related to the Wire Act…and while many assumed that the attempts would never actually lead to charges – Dikshit’s huge payment and guilty plea may actually give the Wire Act the strength it needs to implicate Party Gaming, 888 Holdings, and a slew of online casino gambling executives in criminal activities prior to the passage of the UIGEA.

Dikshit’s decision to plead guilty to one charge against the Wire Act has really had tongues wagging in the online caisno gambling industry. Dikshit, and his company Party Gaming, have been in negotiations with the DoJ for more than 18 months at this point and until the past week, there was little indication of Dikshit’s decision with the DoJ. Part of the reason that few in the industry believed the rumors about Dikshit’s guilty plea and huge fine stems from the fact that few online casinos and executives have given much credence to the DoJ’s decision to prosecute companies and individuals on Wire Act charges.

The Wire Act dates back to 1961 and was passed in the US as a way to stop telephone betting – the passage has no specific implication for the online caisno gambling industry, and, in fact, was written and passed long before the internet was even a viable concept in the world wide community. But Dikshit’s decision to plead guilty and pay means that other’s in the same predicament may have lost some of their bargaining power.