Responding to a report in Tuesday's Financial Times newspaper, which said the company's largest shareholder, Anurag Dikshit, had offered to pay the U.S. a $300 million fine and plead guilty to an internet gambling charge, PartyGaming said it expects any settlement to involve a payment by the company that is "significantly lower" than what the Financial Times has said Dikshit will pay.
The company has been beset by legal problems in the U.S. since the Department of Justice ruled in 2006 that online gambling was and always had been illegal, making PartyGaming open to retrospective legal action.
The American market used to account for 80 percent of the company's revenues.
PartyGaming, which is based in Gibraltar and listed on the London Stock Exchange, said its discussions with the U.S. justice department have "made good progress" and said they are "currently negotiating the final terms of a possible settlement."
PartyGaming's share price rose 6 percent to 147 pence in early trading on the London Stock Exchange.
Dikshit, who owns around 28 percent of PartyGaming, is due to appear in court in New York on Tuesday, and faces as much as a two-year jail sentence for an offense related to internet gaming, according to the Financial Times report.