PartyGaming agrees to a deal with U.S.

Apr 14, 2009 5:03 PM
Industry Insider by Ray Poirier | PartyGaming PLC, the Gibraltar-based Internet gaming company that was the envy of the industry in 2005 when its IPO attracted $8 billion, has agreed to a deal with U.S. authorities that will protect it from prosecution.

CEO Jim Ryan said the company has agreed to pay $105 million in return for an exemption from any court action over the Internet gambling business it conducted in the U.S. prior to October, 2006.

PartyGaming was one of several Europe-based online gaming companies left reeling from the costs of an almost overnight forced exit from the U.S. when the activities were banned by the Bush administration. U.S. players accounted for 80 percent of PartyGaming’s revenue.

In December, Anurag Dikshit, co-founder of the company, agreed to forfeit $300 million after pleading guilty to violating the Federal Wire Act.