Party Gaming close to Amnesty Settlement with US DOJThe New York Post reported Saturday that PartyGaming PLC, the parent company of PartyPoker, may be close to an ‘Amnesty Settlement’ with the United States Department of Justice. PartyGaming saw its stock prices climb 10% Friday as rumors swirled amongst traders.

The article quoted industry sources who said the settlement could be worth as much as one billion dollars. Although the number seems ludicrously high PartyGaming had been socking away money before and after the passing of the UIGEA and reaching a deal with the DOJ would mean any future legalization of online gambling would likely put Party at the front of the line for licensing by the US government.

Let’s look at it this way: Do you think that the US government would grant licenses to companies such as PokerStars or Full Tilt Poker, who continued to allow US players to play and deposit on their sites after legislation in 2006? Or do you think that they will instead favour companies such as PartyGaming, who reached billion dollar settlements with the US government? Licensed companies would hold many advantages over unlicensed companies, such as being able to accept credit cards, Paypal or Neteller and being able to advertise their .com brands within the US market (via television, radio or online advertising).

Basically, Party is “gambling” on the fact their cordial relationship with the US government will pay off down the road in the form of a huge competitive edge in the poker market. Not to mention it opens up the possibility of a very attractive merger or buy out of PartyGaming once the legislative dark cloud is no longer hanging over their head.