PartyGaming Founder May Not Be Out Of Woods Yet

Submitted by C Costigan on

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C Costigan

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The online gambling sector was a little stunned last week when news first broke on sites such as Gambling911.com that PartyGaming co-founder, Anurag Dikshit, pled guilty to illegal Internet gambling and agreed to cooperate with the U.S. Justice Department in an investigation of Party Gaming. Dikshit entered the plea to one count of online gambling in violation of the Federal Wire Act today and agreed to forfeit $300 million. "I came to believe it was in fact illegal under U.S. law," Dikshit told U.S. District Judge Jed Rakoff in New York, referring to PartyGaming's activity. "I have taken full responsibility for my actions."

So why the plea?

One industry expert - and an attorney by trade - speculated as to the motives but expressed reservations regarding Dikshit's ability to reason.

"Any other federal agency, including ICE, can take a run at him and the only thing the OUSA-SDNY will do is say nice things about his cooperation," our expert points out.

In other words, once the legal process gets rolling, Mr. Dikshit could be subjected to years of future prosecution regardless of this plea.

"PartyGaming has relied to heavily on high priced lawyers who are not always looking out for their clients best interests," a source close to one of the executives tells Gambling911.com. 

"This deal appears to be intended to facilitate future testimony by denying the lawyers defending other targets ammunition with which to impeach Mr. Dikshit-‘In fact, you're here today because the government gave you a sweetheart deal for you own crimes, isn't that true!!??,' might be what the government wants to avoid," our legal expert points out.

Then there's this important fact to consider: 

His protections are all contained in the Fifth Amendment bar against double jeopardy.

"Presumably, this would extend to anything having to do with PG up until December 16, 2008," our legal expert says.

Christopher Costigan, Gambling911.com Publisher        

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