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Dikshit did this because he wants to be all clean in the US. Party has been offered up for sale to some Vegas companies, and such a sale could never happen if the company wasn’t clean with the DOJ.
Party initiated the talk with the DOJ themselves and offered from the start to do whatever it takes to comply with US law.
This is what I have been reading here and there for a couple of years now.
It all makes sense. I assume that once the industry is regulated, any online gambling company that wants to operate here legally will have to pay out some huge sum.
So what’s all this talk from Prof Rose that as long as he gives you a legal opinion it is ok to accept bets from US players? I highly doubt that this is actually the case having just read that. Dikshit is getting done for the time when UIGEA wasn’t even in place. If that was illegal clearly it must be about 10 times more illegal now?
He just saw it fit to pay $300 million for a hastle free sale of his company to a US company.
It’s likely cheaper than hiring a dozen lawyers and challenging the US and forcing a court case.
The DOJ has been avoiding court cases, even Mr. Carruthers hasn’t been tried yet for offering sportsbetting in the US.
Accepting a huge sum to assure that no trouble will arise is a sweet deal for the DOJ, and the easy way out for Dikshit.
@Goldfinger 190994 wrote:
So what’s all this talk from Prof Rose that as long as he gives you a legal opinion it is ok to accept bets from US players? I highly doubt that this is actually the case having just read that. Dikshit is getting done for the time when UIGEA wasn’t even in place. If that was illegal clearly it must be about 10 times more illegal now?
Lawyers are in the business of selling opinions. Do you think they are goign to tell you don’t bother with an opinion, it’s illegal anyway?
The cost to defend themselves agianst any real court action is MINISCULE compared to the lost revenues they have experienced in a pull out from the US market and the terrible drubbing the stocks took as a result.
Fear is what is motivating companies to do these foolish things not business sense or economics. I am sorry, but it would be virtually impossible to rack up $300 million dollars in legal fees for a case of this type. An army of lawyers at $500 per hour could spend years on it and they would ultimately prevail.
Bailing out of the US market or paying blackmail on the odd chance of gaining re-entry once you have admitted guilt is rediculous. It’s not good to run as a legal precedent, it destroys the shareholders value, it causes the loss of thousands of jobs and it accomplishs nothing of any real worth for anyone. It’s absurd from a business/cost/benefit/ratio. And it does NOT prevent civil or criminal actions from being filed anyway.
I’m really surprised by this news having followed the Party Gaming share price for the last couple of years. On the back of this news the share price jumped up 34% yesterday.
Everyone knows that Party have been talking to the DOJ for a while now. What I can’t work out is the timing?
Why did he decide to hand himself in during the last remaining days of the Bush administration? :sarcasm:
I think below the surface there is a little more to this than meets the eye. He is obviously not stupid (the guy built Party), and I wouldn’t imagine that he has been badly advised.
I thinks the DOJ prosecuters will get their 15 minutes of fame, and the final outcome won’t be a custodial sentence. A win, win for all concerned.
As for Party selling out to land based casino’s. Party are publicly owned and any potential buyer would need to acquire the shares. The ideal time for a buyer to attain a decent shareholding would have been in the turmoil of the last 12 months, when the share price was at a low.
http://business.timesonline.co.uk/tol/business/industry_sectors/leisure/article5355573.ece
I agree with the Prof. It sets a legal precedent that extortion of casino operators coud become standard procedure. The DOJ’s bullying has reached new levels. It is worrying that they basically demand ransom money for an operation that abided by WTO rules? When did that ever happen?
IMO he is doing it because if they “do” him it will set a presedent to chase down the likes of Pokerstars, Fulltilt, etc etc – He is worth billions so I am sure he will do minimum time and the potential to knock out the guys who are taking US poker players coupled with the fact that it could pave their way back in is worth a shed load to them.
Basically if he is proscecuted they will then have actual case they can base further procecutions on…..I could be wrong though…..He may just feel bad
I agree with ixian. There must be a plan behind this, particularly in relation to the timing.
@Professor 191030 wrote:
It’s not good to run as a legal precedent,
This is the most worrysome part of it.
He may just feel bad
I”m with Alex. And for the timing … well he wanted to repent to a “righteous” regime and which one could be said to be more …. than the W clan?
Love the whole thing.
I promise this much. Whatever the end result it will be to Dikhead’s .. I mean shit’s advantage and to hell with what happens to the rest of the OG or the world for that matter.
This is really bad because as mentioned the timing. I fear some sort of precedent being set that would not have happened if not for the timing. to me that’s the only thing that makes any sense of this … other than he did it now because he feared Obama wouldn’t deal.
