PARTY GAMING DEAL WITH U.S. AUTHORITIES IN SIGHT?

16 May 2008

CEO confident of a resolution before end of 2008


London-listed online gambling group Party Gaming plc could achieve a settlement of its U.S. position with Department of Justice officials before the year is out, Chief Executive Officer Mitch Garber told business reporters this week. Garber, who leaves Party Gaming on 1st May 2009, said his departure would not impact such a settlement.

The company, which exited the United States market following the enactment of the Unlawful Internet Gambling Enforcement Act in late 2006, has been in negotiations with the U.S. authorities for some months, apparently seeking a settlement on its pre-UIGEA activities which would obviate any risk of retrospective prosecution. Such a settlement would considerably strengthen the company by removing uncertainties flowing from the American legal situation.

According to AFX News, Forbes and other media reportage, Garber told reporters that discussions on the issue were progressing in a constructive manner, generating confidence that a resolution could be reached this (2008) year.

"It's very hard to predict. There's some fluidity to it. We're in the midst of a process and our attorneys tell us it is moving in the right direction and at the right speed," Garber said.

The reports recall the Neteller plc case, where the Isle of Man-based e-cash processor paid a $136 million settlement to avoid further prosecution arising from its involvement in U.S. online gambling transactions pre-UIGEA, and recalls that Gibraltar-based gambling group 888.com has also reportedly initiated talks with the US authorities.

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