The news was bittersweet for online gaming company PartyGaming yesterday. After a long drawn out fight between PartyGaming and the U.S. government over the companies dealing with U.S. players both parties have reached a settlement.
Between 1997 and 2006 PartyGaming was accepting bets from U.S. players prior to the passage of the UIGEA, the controversial rulings that prohibited online gambling in the U.S. After the UIGEA was passed several big name online gambling companies and software developers pulled right out of the U.S. market altogether while the legality of many companies prior dealings, like those of PartyGaming came under fire.
It is being reported that under the terms of the settlement PartyGaming will pay the U.S. government $105 million, to be paid out in installments in exchange for a non-prosecution agreement. The settlement money will be paid out up until 2012 with the first payment being already made on the first of April.
Jim Ryan, PartyGaming CEO said the resolution of this issue marks an important day for PartyGaming after a long and complex process. He said both sides have reached the agreement amicably and that the company is happy to be putting the ordeal behind them and are looking forward to seizing opportunities for growth that were previously beyond their reach.
The good news is, although that almost 80% of PartyGaming players were from the U.S., shares have risen 15% after the settlement news broke indicating the company may be heading for greener pastures in later years.