Whether you like it or not, PartyGaming has announced that it has reached a settlement with the United States' Department of Justice for providing online gambling services.

The U.S. passed the Unlawful Internet Gambling Enforcement Act back in 2006 which prohibited the financing of online gambling through bank or wire transfers, credit cards and third party payment processors.

PartyGaming says it entered into the settlement agreement for activities prior to the passage of the UIGEA even though it voluntarily exited the American market after the passage of the gaming act.

"Under the terms of the Non-Prosecution Agreement, the USAO will not prosecute PartyGaming Plc or any of its subsidiaries (collectively, 'PartyGaming' or the 'Group') for providing internet gambling services to customers in the U.S. prior to the enactment of the Unlawful Internet Gambling Enforcement Act ('UIGEA') on 13 October 2006," said PartyGaming in a release.

For its part, PartyGaming will pay the U.S. DoJ a total of $105 million which will be divided into eight installments which will be paid beginning in April of 2009 with payments being made twice a year in September and March thereafter.

The April 2009 payment will amount to $5 million, the September 2009 amount will be $10 million and the remaining six payments will equal $15 million each.

"Such payments will be made from the Group’s existing financial resources," PartyGaming said.

There has been a range in terms of reaction to the news.

"But why settle now?" asks the Financial Times.

"The commission said that U.S. prosecution of European companies was probably in contravention of World Trade Organization rules, as were U.S. laws banning online gambling."

House financial services committee chair Barney Frank is even said to be on the verge of proposing legal online gambling legislation and as the GBGC's Warwick Bartlett told the ft.com, "On the one hand the U.S. has heaped a heavy fine on PartyGaming yet Mr. Frank will lay a bill down that could lead to legalization of online poker."

"So the sinners have been found guilty and redeemed all in one year."

The move has spurred online gambling shares overseas, according to The Washington Post, which says the move could portend an opening online gambling market in America.

" . . . some financial analysts see the settlement as possibly leading to others, thus reducing uncertainty in the industry and opening the door to industry consolidation and expansion outside the U.S.," said the Washington Post.

"Some analysts said PartyGaming also had now increased its chances of gaining a license from any future regulated U.S online gaming market."

The timesonline.co.uk echoes the sentiments as the Washington Post saying, "In practice, the way has been cleared for the group to apply for a gaming licence when the UIGEA is eventually overturned and a regulatory framework is put in place, as seems inevitable."

"The deal also paves the way for the consolidation of the industry."