PartyGaming Settles with US Authorities

The UK gaming group, PartyGaming announced that after two years of negotiations, it has settled a case with the US Department of Justice involving illegal gambling operations in the years prior to the introduction of the UIGEA.

PartyGaming will not be prosecuted, but will need to pay the DOJ a total of $105 million in penalty fees.

PartyGaming also had to admit its guilt in a statement. “We are now well placed to seize organic as well as strategic opportunities that previously were beyond our reach,” said Party Gaming Chief Executive Officer, Jim Ryan after the case reached final closure.

This was a long awaited result for the poker company who will, overall, be delighted with the result and settlement.  However, the stock market didn't react as favourably as was expected when the news came through.  Following the statement release, PartyGaming, listed on the London Stock Market gained a few points before falling back under the price quoted when the deal was announced.

It seems that although PartyGaming were satisfied with the result, investors are still wary of the stock.  Although PartyGaming will not now be prosecuted in the US, the market is still closed to them and until laws change and regulation takes place, PartyGaming will have to continue to build it's brand outside of the US.

However, due to past experience in the US, should the US gaming market open for business to PartyGaming, then this is one stock that will rocket now it's reins have been cut.

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