PRTY Partygaming

 

TIDMPRTY 
 
RNS Number : 2393Q 
PartyGaming Plc 
07 April 2009 
 

 
 
 7 April 2009 
 
 
PartyGaming Plc 
 (the 'Company') 
 
 
Non-Prosecution Agreement Concluded with the US Authorities 
 
 
Further to previous announcements, the Company announces that it has entered 
into a Non-Prosecution Agreement with the US Attorney's Office for the Southern 
District of New York (the 'USAO'). 
 
 
Under the terms of the Non-Prosecution Agreement, the USAO will not prosecute 
PartyGaming Plc or any of its subsidiaries (collectively, 'PartyGaming' or the 
'Group') for providing internet gambling services to customers in the US prior 
to the enactment of the Unlawful Internet Gambling Enforcement Act ('UIGEA') on 
13 October 2006. As part of the agreement, the Company has accepted a Statement 
of Facts regarding its business activities prior to the enactment of the UIGEA 
and has agreed to pay $105 million, payable in semi-annual instalments over a 
period ending on 30 September 2012. Such payments will be made from the Group's 
existing financial resources. 
 
 
Summary of key terms of the agreement 
 
 
  *  The Company has agreed to pay a total of $105 million, payable as follows: 
 
 
o 10 April 2009                       - $5m 
o 30 September 2009              - $10m 
o 31 March 2010                     - $15m 
o 30 September 2010              - $15m 
o 31 March 2011                     - $15m 
o 30 September 2011              - $15m 
o 31 March 2012                     - $15m 
o 30 September 2012              - $15m 
 
 
 
 
  *  The Company has entered into a Statement of Facts regarding its activities prior 
  to 13 October 2006. Key elements of the agreement and factual background are as 
  follows: oFrom 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. o 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. oPartyGaming 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. oIf requested by PartyGaming, the USAO will bring the co-operation and remedial 
  actions of PartyGaming to the attention of other licensing and regulatory 
  authorities. 
 
Commenting on today's announcement, Jim Ryan, Chief Executive Officer said: 
 
 
"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." 
 
 
 
 
+------------------------+-----------------------------------------------+ 
| Contacts:                                                              | 
+------------------------------------------------------------------------+ 
| PartyGaming Plc        |                          +44 (0)207 7337 0100 | 
+------------------------+-----------------------------------------------+ 
| Peter Reynolds, Group Director of Corporate Affairs                    | 
+------------------------------------------------------------------------+ 
| John Shepherd, Director of Corporate Communications                    | 
+------------------------+-----------------------------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 AGRIFMLTMMTMBPL 
 

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