PartyPoker founders to sell bwin.party shareholding

Two of bwin.party’s major shareholders, PartyPoker founders Ruth Parasol and Russell DeLeon, have agreed to sell their entire shareholding as part of the firm’s application for a licence in New Jersey.

Under New Jersey state laws regarding online casino licences, the pair would have been forced to undergo the stringent suitability checks carried out by the Division of Gaming Enforcement as part of bwin.party’s application.

However for reasons of privacy, Parasol and her current husband James Russell DeLeon have agreed with the New Jersey regulator to transfer their entire bwin.party shareholdings into separate divestiture trusts.

The filing with the London Stock Exchange said their shares will be now divested over a period of up to 36 months taking effect on the date that the New Jersey online gaming market opens.

Emerald Bay Limited, wholly-owned by Parasol, and Stinson Ridge Limited, wholly-owned by DeLeon, both hold 7.16% of bwin.party shares.

Online gaming is planned to go live in New Jersey next month, and bwin.party has partnered with casino group Boyd Gaming to power its Borgata-branded site in the Garden State. The Borgata property has already received its licence from the regulator.

The move follows a number of boardroom changes at bwin.party, with all PartyGaming execs now having departed the company.

Earlier this month Lord Moonie, who joined the PartyGaming board in December 2007 before becoming a senior independent director nine months later, stepped down as a non-executive director from bwin.party’s board with immediate effect.

September saw non-executive directors Tim Bristow and Geoff Baldwin resign, with Bristow also having previously served on the board of PartyGaming.