PartyPoker Co-Founder May Face U.S. Jail Time

Anurag Dikshit, one of the founders of PartyPoker, is reportedly set to plead guilty in Southern District Court to a violation of the Wire Act Tuesday in New York and will pay a fine of $300 million US.

Dikshit is the only one of the three co-founders of what was once the world’s largest online poker operator to work directly with the Department of Justice. The other co-founders, Ruth Parasol and Russ DeLeon, have not been in contact with the DoJ in regards to their involvement.

Given his willingness to work directly with authorities it’s believed he’ll receive a favorable sentencing. Dikshit has not made a plea bargain and the maximum sentence he could receive is two years. Many legal analysts have long argued that the Wire Act pertains only to sports betting and does not cover poker. The 1961 act reads as follows:

“Whoever being engaged in the business of betting or wagering knowingly uses a wire communication facility for the transmission in interstate or foreign commerce of bets or wagers or information assisting in the placing of bets or wagers on any sporting event or contest, or for the transmission of a wire communication which entitles the recipient to receive money or credit as a result of bets or wagers, or for information assisting in the placing of bets or wagers, shall be fined under this title or imprisoned not more than two years, or both.”

The ruling could give the DoJ the necessary footing to expand their enforcement of the Wire Act to include other online poker operators, including those still accepting American players.

Dikshit still owns 27% of PartyGaming stock but will not have to divest himself of any interest in the company. Parasol and DeLeon, who are husband and wife, each own 13% of the company’s stock.

PartyGaming (LON:PRTY) officials are expected to make a formal announcement Tuesday morning in London.

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