Party Poker parent company PartyGaming has announced it is to settle with the US attorneys’ office for the southern district of New York (USAO) over its pre-UIGEA operations.

In a non-prosecution agreement, PartyGaming, the company behind PartyPoker, has agreed to pay $105 million. The settlement means that the USAO will not prosecute PartyGaming for providing internet gambling to US customers.

When the controversial Unlawful Internet Gambling Enforcement Act (UIGEA) was passed in 2006, gaming companies outside the US knew they might face possible court action from the US Department of Justice.

Prolonged discussion with The United States Department of Justice (DoJ) has finally brought an end to the Party Poker involvement with a non-prosecution agreement and a $105 million settlement.

This agreement, although expensive could be good news for PartyGaming. Evidence was immediate with shares trading up at 219 pence in London this morning.

With the settlement comes the removal of all possible lawsuits which will make Party poker and its subsidiaries much more appealing to other companies seeking to make deals. But perhaps the biggest advantage will be if (or when) the lucrative American market is re-opened to European competition.

Commenting on the day’s announcement, Jim Ryan, Chief Executive Officer said, ” The resolution of our position with the US authorities marks an important day for PartyGaming. It has been a long and complex process but we have reached an amicable solution with the USAO (US Attorney’s Office) that makes commercial sense for our business and is in the best interests of shareholders. We are now well-placed to seize organic as well as strategic opportunities that previously were beyond our reach .”

As part of the agreement, the company accepted a “Statement of Facts” regarding its business activities prior to the enactment of the UIGEA. By entering into a Statement of Facts regarding its activities prior to October 13th 2006, PartyGaming has confirmed that the company offered Internet gaming to players located in the US between 1997 and 2006 when the bill was passed.

PartyPoker is known for large crowds of bad players. Even on tables with medium and large buy-ins, there are many bad players apparently waiting for an opportunity to lose their money and leave.

PartyPoker is one of the five largest poker rooms worldwide and has a very large number of real money games to offer. Thus, any multitabler should have no trouble finding a game at any limit.