Internet gaming operator PartyGaming announced that it has entered into a non-prosecution
agreement with the U.S. Attorney’s Office for the Southern District of New York
under which the USAO will not prosecute PartyGaming Plc or any of its
subsidiaries for providing Internet gambling services to customers in the U.S.
prior to the enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA)
in October 2006.
As part of the agreement, PartyGaming has accepted a
Statement of Facts regarding its business activities prior to the enactment of
the UIGEA and has agreed to pay $105 million, payable in semi-annual installments
over a period ending on Sept. 30, 2012. Such payments will be made from
the Group’s existing financial resources, the company announced.
Summary of key terms of the agreement
The company has agreed to pay a total of $105 million,
payable as follows:
- April 10, 2009 ($5m)
- September 30, 2009 ($10m)
- March 31, 2010 ($15m)
- September 30, 2010 ($15m)
- March 31, 2011 ($15m)
- September 30, 2011 ($15m)
- March 31, 2012 ($15m)
- September 30, 2012 ($15m)
Key elements of the agreement and factual background are
as follows:
- From
1997 until October 13, 2006, PartyGaming offered internet gaming to players
located in the US,
including real-money poker and casino gaming. On October 13, 2006,
the day the UIGEA was enacted, the Group voluntarily exited the US market.
- Prior to
October 13, 2006, certain of the U.S.
customer transactions intended for PartyGaming that were processed by
third parties, and other gaming and payment-related activity, were
contrary to certain U.S. laws.
- PartyGaming
has agreed to maintain, with respect to its operations, a restriction
preventing internet gambling services from being provided to customers in
the U.S. in violation of the prevailing law of the US or any jurisdiction
within the U.S.
- If
requested by PartyGaming, the USAO will bring the co-operation and
remedial actions of PartyGaming to the attention of other licensing and
regulatory authorities.
Commenting on today’s announcement, Jim Ryan, Chief
Executive Officer said:
“The resolution of our position with the U.S.
authorities marks an important day for PartyGaming. It has been a long
and complex process but we have reached an amicable solution with the USAO 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.”
