Party Bingo parent company settles with DoJ Media Man Australia

Party Bingo parent company settles with DoJ - 9th April 2009

Party Gaming, the parent company of Party Bingo, has reached a settlement with the American authorities over their ‘illegal' gambling in the United States.

Party Gaming agreed to pay $105 million in penalties over three years as part of a non-prosecution agreement.

Lev L. Dassin, acting U.S. attorney for the Southern District of New York, said the company had disguised payments to American customers and breached certain US laws. Party Gaming withdrew from the American market in October 2006 following the passing of the Unlawful Internet Gambling Enforcement Act. At the time 88% of their poker customers were American.

The move will almost certainly spark some serious consolidation in the online gaming market. It is likely that Sportingbet will reach a settleement with the US authorities shortly, meaning that a merger with either Party Gaming or BWin becomes more likely. Party Gaming was thought to be a target of some of the large Nevada gaming corporations such as Harrah's but all of those companies have severe debt problems and are unlikely to be able to fund a bid.

Party Bingo is a small but growing party of the Party Gaming empire.

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