DOJ Near to Agreement with PartyGaming - 04-29-08

April 29 - While the Department of Justice in the United States has spent the last few years bringing charges against gambling companies who allegedly operated illegally within the country's borders by offering online wagering services, the pressure seems to be off ... for now.

The reason is that the Department is very busy these days trying to reach an agreement with one of the world's biggest and most successful online gambling companies, PartyGaming.

As one industry source put it: "There was a frenzy of inquiries just a few months ago then suddenly things quieted down."

It is expected that it won't be very long before a deal is reached between the US government and the gambling operator that is listed on the London Stock Exchange, with experts predicting that PartyGaming could face fines of hundreds of millions of dollars.

The case has been going on since PartyGaming initiated talks with the DOJ last year regarding uncertainties over the possibility of action by the Department about the company's activity in the US prior to the passing of the Unlawful Internet Gambling Enforcement Act in 2006.

At the time, PartyGaming's Chief Executive, Mitch Garber, said: "These discussions are progressing constructively and I remain confident that we will reach a resolution in 2008."

Industry experts say that the one hurdle facing the negotiations at the moment remains the question of 'jail time'. The DOJ is said to be demanding that PartyGaming founders spend time behind bars, while the company has stated that this is absolutely not an option. "They'll pay the steep fines but prison out of the question," said a source. "That has to come off the table."

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