Sportingbet Settles with Government

Fallout from the Unlawful Gambling Enforcement Act continues as Sportingbet.com settled this week with the U.S. government for $33 million.

The company reached a settlement with the government after being charged with taking bets on casino games from U.S. citizens. The UIGEA was created in 2006 and at the time, many foreign gaming companies pulled out of the U.S. market. The Act took effect this past June but the government alleged that Sportingbet continued to take bets from U.S. citizens and allegedly operated somewhere in the United States.

Many companies that operate offshore accept U.S. bidders but they are not allowed to operate in the states.

The United States Department of Justice has reportedly been negotiating with Sportingbet for two to three years now with the result being this $33 million settlement which will keep the company out of danger of being prosecuted by the government.

PartyGaming also settled with the government a few months ago for a much greater sum. There is a bill currently making its way through Congress that will essentially override the dictates of the UIGEA and allow select companies to be licensed in the United States and accept U.S. players. Backers of the bill argue that such gambling could bring billions to the government’s bare coffers.