PartyGaming

PartyGaming plc was a network of gambling sites operated by Ruth Parasol in the Caribbean. Founded in 1997,[1] the network eventually operated under an umbrella company called iGlobalMedia, which then changed its name to PartyGaming. PartyGaming's flagship site, PartyPoker.com, was launched in 2001.[1] Its primary shareholders were Parasol, Group Operations Director Anurag Dikshit, Marketing Director Vikrant Bhargava (who joined the company in 1998 and 1999, respectively), and Russ DeLeon.

The company merged with bwin Interactive Entertainment in March 2011 to form Bwin.Party Digital Entertainment.[2]

History

In the 1990s, Las Vegas consultant and actuary Michael Shackleford ran a computer trial of the first blackjack and roulette games offered by the company. Shackleford stated that the "results clearly showed they (the games) weren't fair". Ruth Parasol's spokesman Jon Mendelsohn acknowledged that the chances had "tipped too much toward the house", but attributed the problems to "software flaws", not rigging. It led to the development of their own proprietary software rather than using external platforms.[3]

The IPO

The foursome sold over 23% of their combined shares to take the company public on the London Stock Exchange in June 2005.[4] The initial offer price of 116p valued the company at £4.64 billion[1] ($8.46 billion). Within a month a rising share price rose saw the value of the company exceed $12 billion.

References

bwinparty.com partygaming.com, retrieved 25 March 2015^
Gambling firms Partygaming and bwin reveal merger plan BBC News, 29 July 2010, retrieved 29 July 2010^
"Woman Billionaire Made Fortune Selling Vice on the Internet". Los Angeles Times. 27 November 2005^

Post IPO

Dikshit and Bhargava stepped down from the company's board in May 2006. Dikshit announced that he would remain with the company as the Chief Operating Officer; Bhargava would continue as an advisor and shareholder of the company while pursuing other business interests.[5]

In February 2006, PartyGaming introduced a new integrated platform, enabling multiple games to be played without requiring customers to log in each time and deposit funds in separate accounts.[1] An online backgammon site, PartyGammon.com, was launched in mid-2006.[1] In August 2006 PartyGaming acquired Antigua and Barbuda–registered sports betting operator Gamebookers which focuses on the European market.[6]

In its early days, PartyGaming entered into several marketing partnerships that allowed companies such as Empire Online, which ran Empire Poker, to share in a common pool of poker players. Players could access the PartyGaming network either through the PartyPoker.com software itself or through the software of one of PartyGaming's "skin" partners.

In mid-2005, PartyGaming made various moves to ringfence its own players from those of the "skin" partners. The company began to explore mergers, buyouts, and other options. In October of that year, PartyGaming launched an upgraded PartyPoker.com software system that cut off the "skin" partners from the main pool of players, and left the "skin" players on the old system.

In November 2005, offer discussions with Empire Online were terminated, and in December Empire Online confirmed that it had started legal proceedings against PartyGaming in the High Court of Gibraltar. In February 2006 the two companies announced a US$250 million settlement deal; PartyGaming agreed to acquire Empire's "skin" operations, and Empire dropped the suit.[7] In December 2006, PartyGaming announced the acquisition of the remaining assets of Empire Online.[8]

PartyGaming also acquired the operations of former "skin" partners IntertopsPoker and MultiPoker, in separate private transactions for undisclosed amounts.

History

The IPO

References

Post IPO

U.S. legislation

French legislation