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Subject to Interpretation

The US government may have just put another nail in the coffin this week with a settlement deal with the PartyGaming online casino gambling group. The US Department of Justice has aggressively pursued European based internet gambling companies that operated in the US market prior to the Unlawful Internet Gambling Enforcement Act (UIGEA) despite the continued public outcry the foreign online casinos may have actually acted with the confines of US law prior to the UIGEA. This settlement with the DoJ comes right on the heels of the EU’s decision that the UIGEA unfairly targets foreign gaming companies.

Party Gaming is a major online casino gambling operator in the EU market, and the company had a heavy interest in the US market prior to the UIGEA. Once the UIGEA came into effect, Party Gaming, like other European online casinos, voluntarily exited the US market. The DoJ though took the UIGEA as an opportunity to seek out payment from European internet gambling companies that supposedly violated the Wire Act in their pre-UIGEA activities.

The latest news from Party Gaming indicates that the company has accepted an agreement to pay the US government USD $105 million as a way to avoid further prosecution. There is no reasoning behind the settlement really, except perhaps that Party Gaming does not feel that it can win a drawn out court battle and instead would like to bring the situation to a firm close and avoid any further DoJ action. Perhaps the agreement is a testament to Party Gaming’s efforts to keep the peace with the US officials in the off-chance that internet gambling does become licensed and regulated in the US.