PartyGaming To Pay US 50 Times More Than US Has to Pay Antigua

Wouldnt the damages to Antigua be much closer to the $3.4 billion sought, rather than the World Trade Organization settlement of $21 million?

In an absurdly unbalanced result, PartyGaming has reportedly negotiated a settlement with the U.S. government concerning illegal online gambling before the 2006 advent of the Unlawful Gambling Internet Enforcement Act.

In order to forgive any activity by PartyGaming in the past, the U.S. is rumored to be demanding a $1 billion dollar payment. In the meantime, in a case already adjudicated, the U.S. is only required to pay the country of Antigua $21 million in damages resulting from an illegal restriction of trade.

PartyGaming PLC shares increased by 10% in light of the unexpected conclusion to the U.S. persecution, as did shares of other online gaming sites. The company is listed on the London market, as trading in such companies is illegal on the American markets.

While the settlement may make sense to PartyGaming, in that company executives would be able to return to travelling freely through the U.S. and company investors could stop worrying about future attempts to prosecute the case, it defies logic and reason as far as porportion.

To say that the damage done by PartyGaming in allowing participation by U.S. citizens at their online casinos is exponentially greater than the damage done by the U.S. in blocking Antigua's main export while allowing local land casinos to engage in the same activities is ludicrous.

Yes, PartyGaming owners did recently score a $7 billion windfall by taking their company public; but that just underscores the true damage done by the U.S. to Antigua.

If PartyGaming is worth $7 billion with its largest market, the U.S., closed to it, then what was it worth when that market was functioning? Wouldn't the damages to Antigua be much closer to the $3.4 billion sought, rather than the World Trade Organization settlement of $21 million? And how much will the claims of the European Union countries be worth? Hopefully, the WTO will examine the PartyGaming agreement when determining future penalties.