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Online Poker Sites Talking with USAO: Party Poker & Pacific Poker

by PokerPages.com
Wed, Jun 6th, 2007 @ 12:00am

Just two days ago PartyGaming, parent of Party Poker, announced it was talking with the US attorney's office for the Southern District of New York (USAO) about the company's activities prior to October of 2006, when the Unlawful Internet Gambling Enforcement Act (UIGEA) was enacted; and now 888 Holdings, parent of Pacific Poker, just announced it too is in preliminary discussions with the USAO.

Remember that PartyGaming was the first site to stop supporting US customers playing for real money.

The PartyGaming release says it's in the process of voluntarily responding to a request for information that was requested by the Attorney General's office. No further explanation as to the nature of the information was provided.

The Financial Times commented that PartyGaming and other similar sites' collective value and possible destiny "depend on events in a market that they have long been forced to quit", with the companies' shares at the mercy of the actions of US lawmakers. Therefore one might surmise that PartyGaming is trying to limit the possibility or amount of prosecution by the USAO, so it can look forward to doing deals without a huge liability hanging over its head.

Meantime, 888 Holdings said in their June 5 statement that it initiated discussions with the USAO "following uncertainty as to the likelihood (if any) of action by US law enforcement agencies regarding activity in the US prior to the enactment of the Unlawful Internet Gambling Enforcement Act (UIGEA) on 13 October 2006".

The group said it was too early to asses any particular outcome from these discussions. But it expressed hope that the talks could draw a line under any future threat of legal action by US authorities.

You may recall that the office both companies are speaking with is the United States Attorney's Office for the Southern District of New York. It is the same office to charge the NETeller founders with racketeering and fraud (click here to catch up on their arrest).

NETeller funds recently re-estimated at around USD $60 million were seized by the office to be held as evidence. The funds have yet to be released (click here to read related article about NETeller plans to release the funds).

Read Related Articles:

  • NETeller Agrees on Plan to Distribute Funds to Online Poker Players- Finally
  • NETELLER Founders Arrested by FBI, Charged with Money Laundering
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