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Party Gaming pays up in ‘no prosecution' deal
UK-based online gambling operator Party Gaming has struck a ‘non prosecution' deal with the US Government as part of which it has agreed to pay $105 million dollars over the next three years.
The US Justice Department has undertaken not to prosecute PartyGaming or any of its subsidiaries for providing internet gambling services before the Unlawful Internet Gambling Enforcement Act was passed in October 2006.
Jim Ryan, Chief Executive Officer of Party Gaming said: "The resolution of our position with the US authorities marks an important day for PartyGaming. It has been a long and complex process, but we have reached an amicable solution that makes commercial sense for our business and is in the best interests of shareholders. We are now well-placed to seize organic as well as strategic opportunities that previously were beyond our reach."
Two other UK online gaming service providers, SportingBet and 888 Holdings are also understood to be in talks with US authorities on the issue.
"The non-prosecution agreement with the US authorities will be welcomed by the majority of those in the online industry as a break from the past with the opportunity now to move forward," commented Warwick Bartlett, Chief Executive of Global Betting & Gaming Consultants.
"The moot question is that after all of this will the UK-listed companies be granted US licences in the future. The USA, the land of the free? It is if you are American," he added.
