PartyGaming Prepares To Go Into US Market

Prior to the Unlawful Internet Gambling Enforcement Act (UIGEA) that was introduced in the U.S. in 2006, PartyGaming was one of the largest online gambling providers in that country. However, they were forced to pull out of the U.S. after the Act was introduced. This week PartyGaming announced that they are noticing an increased momentum towards the regulation of online poker in the U.S. and are preparing to make a return.

Jim Ryan, PartyGaming Chief Executive, announced that it was possible that the UIGEA could be overturned as early as this year and that in the event of this happening, they are fully prepared. Last year PartyGaming reached an agreement with the U.S. Department of Justice and all the company's wrongdoings in the past was cleared by them. This agreement has left an opening for the online casino operator to re-enter the U.S.

Online gambling market should the UIGEA be overturned. They could, however, re-enter the U.S. market without the UIGEA being overturned as Lawmakers in many states are contemplating regulating online poker. In the event of the Lawmakers being successful PartyGaming will be permitted to gain licenses to operate within those states.

U.S. Attorney Ortiz stated, "The conduct alleged in this case reveals a blatant effort to circumvent gaming and tax laws. The notion that the type of activity alleged here is legal because it is conducted over the Internet from offshore, is pure fiction."

"We are seeing increased momentum towards regulating online poker (in the US), It's possible that it could happen this year and we're prepared if it does." said PartyGaming Chief Executive Jim Ryan, on a conference call.

"It's possible that it could happen this year and we’re prepared if it does." U.S. Attorney Ortiz stated.

PartyGaming was in the news last year in the US after they reached an agreement with the US Department of Justice that cleared the company of any possible wrongdoing in the past. That agreement opened the door for the online gambling operator to re-enter the US market if, and when, the UIGEA was overturned.

U.S. Attorney Ortiz is not happy with this situation and stated that the conduct in this case shows a brazen effort to evade gaming and tax laws. He added that the idea that this type of activity is legal because it is conducted over the Internet from offshore is untrue.

PartyGaming is one of the most popular gaming companies in the world and recently announced an increase of twenty-seven percent in their revenue for the first quarter of 2010. In addition, Representative Barney Frank has proposed legislation that would overturn the UIGEA. Frank is also pushing another bill that would lay the framework for a regulated online casino industry in the US.