PartyGaming Plc, the company behind such popular sites as PartyPoker.com and PartyCasino.com, after more than two years of negotiations, has finally reached a Non-Prosecution settlement agreement with US officials, according to a recent press release provided by the company. 

This agreement, which was entered into with the US Attorney's Office for the Southern District of New York, will effectively clear PartyGaming of any legal responsibility for actions the company may have taken prior to leaving the US in 2006, in exchange for $105 million in fines, to be paid incrementally from now until September 30th, 2012.

Along with the hefty fines, PartyGaming also had to enter into a Statement of Facts regarding those previous activities, the key elements of which are provided below (as written by PartyGaming):

-From 1997 until 13 October 2006, PartyGaming offered internet gaming to players   located in the US, including real-money poker and casino gaming.  On 13 October, 2006, the day the UIGEA was enacted, the Group voluntarily exited the US market.

-Prior to 13 October 2006, certain of the US customer transactions intended for PartyGaming that were processed by third parties, and other gaming and payment-related activity, were contrary to certain US laws. 

-PartyGaming has agreed to maintain, with respect to its operations, a restriction preventing internet gambling services from being provided to customers in the US in violation of the prevailing law of the US or any jurisdiction within the US.

-If requested by PartyGaming, the USAO will bring the co-operation and remedial actions of PartyGaming to the attention of other licensing and regulatory authorities.

Some form of settlement agreement like this one, has been a long stated goal of PartyGaming's, since the company first chose to abandon the US market with the passing of the UIGEA in 2006.  With this agreement now in place, PartyGaming can finally feel comfortable moving forward, without the fear of possible future legal entanglements.

"The resolution of our position with the US authorities marks an important day for PartyGaming.  It has been a long and complex process but we have reached an amicable solution with the USAO that makes commercial sense for our business and is in the best interests of shareholders.  We are now well-placed to seize organic as well as strategic opportunities that previously were beyond our reach."  -Jim Ryan, Chief Executive Officer PartyGaming. 

Stock prices for PartyGaming on the London Exchange rose significantly on Tuesday, with the release of this information.

Story by Mark Anderson