A Heavy Price To Be Placed On Establishing Legality By U.S. Officials According To Uk Financial Site

ThisIsMoney.co.uk, the well known British financial news site, has recently reported the possibility that the U.S. Justice Department may attempt to regain any and all moneys acquired by online gambling groups 888.com and Party Gaming.com from players resident in the U.S. during the period prior to their getting out of the market but following passage of the Unlawful Internet Gambling Enforcement Act, according to unnamed sources.

According to the article the amount in question could be as much as $900 million or £445m for the online gambling website PartyGaming, and $120 million for 888.com.

The need to come up with this much money would certainly have a negative affect on the financial viability of these two company. It is highly unlikely that either company would come up with this much money since to do so would immediately put them both out of business.

There is an alternative solution and that is that payment be shared between the two companies and their principal founders and owners, to whom it is reported were paid large dividends representing the major part of the profits that were collected.  It is alleged that PartyGaming has paid out in dividends to their shareholders 90 percent of its US profits with 70 percent going to the founding shareholders who still own large portions of the company.

It was reported earlier this week that the two companies are in negotiations with Department of Justice officials.

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