PPA Upset with PartyGaming Founder’s Guilty Plea
Saturday, December 27th, 2008The settlement in the case involving the United States Department of Justice and Anurag Dikshit, the co-founder of PartyGaming has disappointed many people and organizations including the Poker Players Alliance (PPA). Las week, Dikshit decided to submit a guilty plea in the Southern District New York for being in violation of the 1961 Wire Act. He has since agreed to pay some $300 million in fines. He has also committed himself to helping out authorities in charge of their ongoing investigation into the violations.
Back in 1997, Dikshit helped to create the highly successful online casino software platform to serve the Gibraltar-based online gaming operator. Dikshit has ever since been considered the largest shareholder in the company, commanding some 28% of all of the company’s stocks.
Officials from PPA, a poker advocacy group based in Washington, DC, have voiced their deep disappointment with the guilty plea that Dikshit submitted. They feel that this development makes the United States official online gambling regulatory policy even more unclear. There has been no precedent set by this situation but it does not bode well for anybody who has any stake in the success of the industry.
Since the original Wire Act was put into effect so long ago and it doesn’t have any mention of the internet which was not yet invented in 1961, this all seems a little absurd. Especially since the Fifth Circuit Court of Appeals decided that the Wire Act should apply only to Internet wagers that involve sports events or other related contests. Many details of the regulations still contain contradictions. There are many holes that need to be filled in regarding the Wire Act and the Unlawful Internet Gambling Enforcement Act that was put in place back in 2006.
