Founder of Party Gaming Pleading Guilty on Gambling Charges

Founder of Party Gaming Pleading Guilty on Gambling Charges

In what is easily the most stunning case of theUSfederal government’s crusade against online gambling, the founder of the Party Gaming franchise has really been hit by the zealots in theUSdepartment of justice. Everyone is aware of the Unlawful Internet Gambling Enforcement Act that mandated action against such people and most people are also aware that US authorities for the longest period of time have been trying to nab Party Gaming. The reason for this is simply that Party Gaming is the company that owns the Party Poker brand and since Party Poker at the time of the UIGEA’s passing was really associated with the cream of the crop in online poker, American authorities rightly assumed that nabbing them under this legislation would be a huge public relations boost to their overall campaign.

 Party Gaming

However, Party Gaming has been fighting the US government for the last two years and just when things seemed to be calming down a bit, the President ordered a crackdown under this law before leaving office, worried that the President Elect would have a stance on online gambling that came nowhere near the hard line stance of the current administration. Well, the persistence of theUSgovernment appears to have paid off in this case, as they now have their man within their own justice system.

 

The man is Anurag Dikshit, who is the co-founder of the Party Gaming Corporation. It is a publicly traded company that is listed on the London Stock Exchange and for that reason it is a company that is beholden to international law in a way that companies based in third world countries can avoid. However, the end result of the US campaign against him is that he was forced to plead guilty in court and furthermore his company will also be forced to pay $300 million in back fines and penalties while at the same time being forced to exit the US market and leave thousands of different online gambling enthusiasts within the United States high and dry.

 Online Gaming Industry

In terms of the overall online gambling industry, this has to be the most pessimistic the outlook has been for them since the controversial UIGEA was passed in the first place. While the mentality is not the same sky is falling mentality that prevailed during those times, it is nevertheless one of fear and trepidation. Most online companies reason that if theUSgovernment can take down Party Gaming, one of the biggest online gambling operations in the world, it is quite reasonable to assume that federal authorities at the United States Department of Justice have the ability to reel in any fish they feel like catching.

 

This is not going down without a fight however, as the United Statesgovernment is now under investigation by both the World Trade Organization and the European Union Trading Commission as both entities seek to determine if the US ban on online gambling is biased against European traders. If they find that it is, there could be a third player introduced into the current situation.

 

June 13, 2010 by : posted in Gambling and Legality No Comments