Anurag Dikshit, one of the four founders, and a 27 percent shareholder in the Gibraltar-based Internet gambling giant Party Gaming, is believed to have agreed to plead guilty to a charge relating to taking US wagers over the Internet pre-2006, according to reports in the Financial Times and TheTimesOnline. Dikshit has apparently agreed to pay a GBP 300 million fine, and to "cooperate" in the US Department of Justice's continuing enquiries into online gambling in the United States.
It is not yet known whether Dikshit acts unilaterally or as part of Party Gaming negotiations with the DoJ which have been ongoing for some time in attempts to clean the slate on the company's US activities prior to the passage of the Unlawful Internet Gambling Enforcement Act in 2006.
Industry observers expect a statement from the company when trading opens on the London stock exchange this morning. A settlement could pave the way for the company to resume consolidation negotiations with other firms.
The company exited the US market when the UIGEA came into force, taking a 70 percent loss in its business from which it has been fighting back ever since.
The reports suggest that Dikshit will make an appearance later today (Tuesday) in the Southern District Court of New York he is expected to enter a guilty plea, probably under the Wire Act which covers sportsbetting, although the position of casino and online poker wagering under its provisions is arguable. He is a native of India resident in Gibraltar With a current fortune estimated to be $1.75 billion, he is 35th on the list of the richest Indians in the world, the TimesOnline reports., and reportedly risks a jail term of up two years by entering the US to make the plea agreement.
Dikshit, along with Ruth Parasol, her husband Russell DeLeon and marketing expert Vikrant Bhargava founded the forerunner of Party Gaming, Starluck Casino Online and iGlobalMedia in 1998, with Dikshit providing software engineering expertise. He designed the original software programme with scaleability in mind, which proved to be the linchpin of the group's success. Underpinned by Parasol’s and Bhargava's astute marketing skills, pre-tax profits of less than $6 million in 2002 jumped to $370 million in three years as US players frequented PartyPoker.com. The company’s almost GBP 5 billion flotation in June 2005 was one of the biggest on the London exchange for some time, and made GBP 420 million for Dikshit when he sold over 350 million of his shares following the IPO.
In June 2005, PartyGaming Plc (which includes PartyPoker, PartyCasino and PartyBingo) floated on the London Stock Exchange at a value of GBP 4.64 billion ($8.46 billion) and in September was admitted to the FTSE 100 list of companies.The enterprise made billionaires of the founders, and Dikshit, Parasol and DeLeon are believed to be among the wealthiest residents of Gibraltar. Parasol and DeLeon, who hold 14 percent each of Party Gaming according to the reports, have also been the subject of speculation suggesting they may be negotiating with the US authorities.
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