Online Casino Owner Fined

In the latest Indian casino news, one of the Indian founders of the world's largest online casino seems to have taken quite a hit. As one of the founders of the online casino, 'PartyGaming' and a huge icon on the Indian online casino scene, Anurag Dishit is in for a difficult time.

Online Casino Hit by an American Bill

This Indian casino news comes in the wake of President George Bush's recent bill in the United States Congress. This bill passed on September 30 and is against internet gambling. The bill would make it both illegal to accept bets on the internet as an online casino and for credit card firms to make payments that go to gambling websites.

Online Casino Man, Dikshit

Anurag Dikshit got his start as a software engineer for IIT Delhi. He is, today, the biggest shareholder of the Gibralter-based company, PartyGaming and has a 29% stake in the company. He is the richest man in Gibralter, and, prior to this bill, his shares were estimated to be worth 1.24 billion dollars! Dikshit was named the world's 207th richest person only two years ago in the 2006 Forbes magazine issue. He was also shown to be the tenth richest Indian in Forbes in 2005 with his net worth estimated at 3.3 billion dollars.

Indian Casino News: Dikshit Takes a Fall

For years, US legal authorities have been hounding Dikshit about his PartyGaming involvement in the online casino gambling world. Dikshit has decided to come clean, paying the US government more than $300 million! He is hoping that this voluntary cooperation will keep him from going to jail. He has admitted, under the Wire Act, that he is guilty of certain federal crimes and is trying to come clean in America. All of this is ironic, however, since Dikshit and PartyGaming haven't been in the US market in years, while some of their rivals such as Poker Stars and Full Tilt Poker continue to accept US customers. Dikshit's partners in PartyGaming have chosen to lay low and not to admit any fault at the moment. They are banking on Obama to be more online casino friendly.

Bad News with the Bill

So, why is this bill in America such a fall for this online casino magnet? Since this bill was passed, PartyGaming's share price has dropped over 50%. The stock has actually lost almost 75% of its value from its highest point. The United States accounts for a huge share of online casino gambling, making up over half of the 12 billion dollar internet gambling market. PartyGaming is estimated to acquire more than 80% of its revenue from the United States market.

While the Indian casino news could view these changes in the Unites States as a chance to gain more Indian customers, they will, nevertheless, feel the negative effect of this change. Many online casino companies do plan to expand their presence in places like Asian and European countries. However, India may not be able to capitalize on this change or to draw more online casino business their way. And, at the moment, Dikshit seems to have a lot more to lose from having ties to the American government than he has to gain.