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‘Guilty' plea to illegal internet gambling charge
Anurag Dikshit, one of the co-founding shareholders of online gaming company PartyGaming, has entered a guilty plea to charges brought against him in America under the Wire Act 1961, agreeing to pay a fine of $300 million in three installments. The Wire Act has not previously been applied to internet gambling actitivies beyond sports betting.
The agreement was reached with the United States Attorney's Office for the Southern District of New York (the "DoJ") and Anurag Dikshit as an individual, and it does not involve the company PartyGaming.
In an announcement prompted by news of the settlement, PartyGaming distanced itself from the deal, pointing out that it initiated discussions with the DoJ some time ago "with the aim of removing any uncertainty regarding the Company's legal status in the United States in respect of the period prior to the passing of the Unlawful Internet Gambling Enforcement Act (UIGEA)."
Before the UIGEA was passed, PartyGaming allowed customers in the US to play or make deposits on the group's real money sites. PartyGaming is understood to have had almost a million US-resident players of online gambling games at one point.
"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 statement continued.
"The Company believes that any such settlement is unlikely to include a criminal plea on the part of the Company or any director."
Clive Hawkswood, Chief Executive of trade body the Remote Gambling Association, said that the DoJ and outgoing Administration were showing "a total disrespect for the legal rights of European online gaming companies and a complete disregard for US international commitments under the General Agreement on Trade in Services... now the US authorities, it seems, have succeeded in pressuring a major shareholder into making a deal. A line has been crossed and it could set a worrying precedent."
