Party Gaming Founder Gets Twelve Month Probation

Dikshit received just twelve months of probation. As part of his plea bargain, he had agreed to forfeit US $300 million. He has also been cooperating with the US federal investigation into Party Gaming’s activities. Party Gaming has been somewhat shielded from any charges, as it has come to a non prosecution agreement with the government. Part of this deal stipulates that Party Gaming have conceded that their operations within the US were inconsistent with the country’s laws.

The Wire Act which is central to this case applies specifically to sports betting alone. Most other online gambling companies, even the ones that no longer operate in the US, insist that the Wire Act does not apply to online poker or casino games.

Many others in the online gambling industry were shocked when Dikshit agreed to the idea that his company had violated US law, in 2008. PokerStars maintain that they have never broken any US laws, and the federal government has never tried to charge any other company operating gambling sites within their country.

Dikshit came forward, of his own accord to make a deal with the US government, leaving many within the industry to view this move as a betrayal. The tow other cofounders of Party Gaming, Ruth Parasol De Leon and Russell De Leon have not been charged. They both reside in Europe.

Due to Party Gaming’s absence, PokerStars and Full Tilt Poker have reaped most of the rewards. Forbes estimates that PokerStars generates US $1.4 billion in annual revenue. Full Tilt Poker generates approximately US $500 million annual revenue. Forbes have estimated that around 2.5 million Americans play poker online.