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US Injunction Accepted by Online Casino

A leading online casino company which has been in the news for many months after its CEO was arrested by the US for breaking the law and running an online gambling firm, has just announced that it will agree to the permanent suspension of its US facing online casino business. The online casinos group is doing this in hopes of settling with the US Attorney’s Office in Missouri.

The suspension replaces the temporary restraining order, which were issued against the online casino in July 2006. It also represents an important step in negotiations with the Department of Justice with regards to the settlement of the outstanding criminal action against it. The online casino company has stated that it will agree to form an arrangement with the Department of Justice for its Antiguan subsidiary to return cash to its online gambling customers.

However, it seems that the online casino has been unable to refund money to its online casino members. In a statement, the company confirmed that repayments ‘remain dependent on collection of monies from prosecutors and other debtors.’ The online casino group has confirmed a sale of a major Asian online casino and sports book, back to the original sellers for US 2.25 million dollars, only six months after purchasing it for US 22 million dollars. The online casino group is still reeling from its encounter with the law when its CEO was arrested and tried in the US.

‘The Company’s inability to pay the outstanding consideration when it fell due or to fully integrate the business, as well as damage to the business caused by the legal action of the Department of Justice and its impact on customer confidence have driven the pricing of this sale.’ This was written in a statement made by the online casino group. The online casino firm has not admitted to any kind of wrongdoing or law breaking. The group’s main focus now is on generating some value for its shareholders who are involved in its Asian operations.

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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