PartyGaming
PartyGaming was an online gambling company best known for the PartyPoker.com poker network before merging with bwin Interactive Entertainment in 2011.
Last updated November 4, 2026
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Overview
PartyGaming was an online gambling company and network of internet gaming sites that grew from a Caribbean-based operation into one of the largest publicly traded online poker businesses of the mid-2000s. The business was founded in 1997 and initially operated under the umbrella of iGlobalMedia. Ruth Parasol was its principal founder and public figure, while Anurag Dikshit, Vikrant Bhargava, and Russ DeLeon became important shareholders and executives as the company expanded. The group’s best-known consumer brand, PartyPoker.com, launched in 2001 and became the central product around which the wider network was built. In its early years, PartyGaming used external gaming technology before questions were raised about the fairness of some early blackjack and roulette products. A computer trial conducted by Las Vegas consultant and actuary Michael Shackleford reportedly indicated that the games were not fair. A representative for Parasol acknowledged that the odds had been excessively favorable to the house but attributed the problem to software flaws rather than deliberate manipulation. The episode prompted the company to develop proprietary gaming software, an important technological and operational shift. PartyGaming’s poker model used a shared network of players. Independent or affiliated operators, often called “skins,” could market their own poker sites while connecting customers to a common PartyGaming player pool. This arrangement helped the company expand distribution, but it also created commercial tensions over player ownership, platform control, and revenue sharing. In 2005 PartyGaming began separating its own customers from those of skin partners and introduced an upgraded PartyPoker.com platform that no longer pooled players with the partners’ older system. A dispute with Empire Online followed. The parties reached a reported US$250 million settlement in February 2006, under which PartyGaming acquired Empire’s skin operations and Empire discontinued its legal action. PartyGaming later acquired remaining Empire Online assets and separately obtained the operations of IntertopsPoker and MultiPoker in private transactions. The company went public on the London Stock Exchange in June 2005. Existing shareholders sold more than 23 percent of their combined holdings at an initial offer price of 116 pence, giving the company a valuation of approximately £4.64 billion at the offer. The transaction generated proceeds for the selling shareholders rather than issuing new shares to fund PartyGaming. Its market value rose sharply during the first month of trading, although a cautious outlook statement in September caused the share price to fall by roughly one third in a single day. PartyGaming was nevertheless promoted to the FTSE 100 Index that same week and later moved back toward its initial offer value. The company expanded beyond poker. In February 2006 it introduced an integrated platform that allowed customers to access multiple games without repeatedly logging in or maintaining separate deposits. PartyGammon.com launched later that year, and PartyGaming acquired the Antigua and Barbuda-registered sports betting operator Gamebookers in August 2006, strengthening its European betting presence. The company’s American business, however, was severely disrupted by the Unlawful Internet Gambling Enforcement Act of 2006. PartyGaming announced on 2 October 2006 that it would suspend real-money gaming for United States customers. Its stock fell by almost 60 percent in approximately 24 hours, and the company was removed from the FTSE 100 and placed in the FTSE 250. In April 2009 PartyGaming reached a non-prosecution agreement with the United States government and agreed to pay a US$105 million penalty over four years. In a statement of facts associated with the agreement, the company acknowledged that before October 2006 it had targeted American customers and processed transactions contrary to certain United States laws. The settlement enabled PartyGaming to pursue regulated-market opportunities outside the United States. In June 2010 it obtained French regulatory approvals for online betting sites including PartyBets.fr and Gamebookers.fr, as well as poker licenses covering PartyPoker.fr, ACFPoker.fr, and LuckyJeux.fr. PartyGaming ceased to exist as an independent listed company after merging with bwin Interactive Entertainment in March 2011. The transaction created bwin.party Digital Entertainment, later known as partypoker’s corporate successor under other ownership. PartyGaming is therefore best understood as a historical online gambling company and brand rather than an active standalone enterprise.
History
PartyGaming originated in 1997 as a Caribbean-based online gambling operation associated with Ruth Parasol and later organized under the name iGlobalMedia. The business initially offered casino-style games and used outside gaming technology. Concerns about the fairness of early blackjack and roulette products led to testing by Las Vegas consultant and actuary Michael Shackleford. The company acknowledged that the software produced odds that were too favorable to the house, while denying that the outcome was deliberate manipulation. PartyGaming responded by developing proprietary software, giving it greater control over its gaming platform. The company’s most consequential growth product was PartyPoker.com, launched in 2001. PartyGaming developed a network model in which third-party operators could market branded poker sites, known as skins, while drawing players from a shared pool. The arrangement supported rapid customer acquisition and made PartyGaming a major online poker network. By 2005, however, the company was seeking greater control over its customer base. It upgraded PartyPoker.com and separated its own players from skin-partner players, leaving the partners on the older system. The restructuring generated a dispute with Empire Online. Litigation was settled in 2006 when PartyGaming agreed to acquire Empire’s skin operations for a reported US$250 million and Empire abandoned its legal claim. PartyGaming subsequently bought Empire’s remaining assets and acquired the operations of IntertopsPoker and MultiPoker in undisclosed private transactions. PartyGaming listed on the London Stock Exchange in June 2005. The flotation involved the sale of existing shareholder holdings rather than the issuance of new shares. More than 23 percent of the principal shareholders’ combined holdings were sold at 116 pence per share, producing a reported valuation of £4.64 billion. The market initially valued the company considerably higher, but a cautious growth statement in September caused a severe one-day decline. PartyGaming was promoted to the FTSE 100 Index during that period and later returned to approximately its initial offer value. Expansion continued through platform integration and new gambling verticals. In February 2006 PartyGaming launched an integrated platform intended to let customers move between games without logging in repeatedly or maintaining separate deposits. PartyGammon.com was introduced later in 2006. The company also bought Gamebookers, an Antigua and Barbuda-registered sports-betting operator focused on Europe, in August 2006. Senior personnel changed during this period: Anurag Dikshit and Vikrant Bhargava stepped down from the board in May 2006, although Dikshit remained as chief operating officer and Bhargava continued as an adviser and shareholder. Regulatory intervention in the United States transformed PartyGaming’s business. After Congress passed the Unlawful Internet Gambling Enforcement Act in September 2006, PartyGaming announced on 2 October that it would suspend real-money gaming for US customers. The company stopped those services after the act was signed into law, while free-play products and non-US customers remained available. Investors reacted sharply: the stock lost almost 60 percent in roughly 24 hours, and PartyGaming moved from the FTSE 100 to the FTSE 250. In April 2009 the company reached a non-prosecution agreement with the US government, agreeing to pay a US$105 million penalty over four years. The associated statement of facts acknowledged that PartyGaming had previously targeted US customers and processed transactions contrary to certain US laws. After withdrawing from the US real-money market, PartyGaming emphasized regulated jurisdictions. In June 2010 it obtained French approvals for online betting and poker services. Its French portfolio included PartyBets.fr, Gamebookers.fr, PartyPoker.fr, ACFPoker.fr, and LuckyJeux.fr. PartyGaming merged with bwin Interactive Entertainment in March 2011. The resulting bwin.party Digital Entertainment group replaced PartyGaming as the corporate entity, making PartyGaming a historical brand and former listed company rather than an active standalone business.
- 2011
Merger with bwin Interactive Entertainment
[1]The merger created bwin.party Digital Entertainment and ended PartyGaming’s independent corporate existence.
- 2010
French market approvals
[1]PartyGaming obtained approvals for French online betting and poker services.
- 2009
US non-prosecution agreement
[1]The company agreed to a US$105 million penalty and acknowledged pre-2006 dealings with US customers that conflicted with certain US laws.
- 2006
Integrated gaming platform introduced
[1]A platform update enabled customers to access multiple games without repeatedly logging in or making separate deposits.
- 2006
Gamebookers acquired
[1]PartyGaming acquired the Antigua and Barbuda-registered sports-betting operator Gamebookers to expand its European betting activities.
- 2006
US real-money services suspended
[1]PartyGaming withdrew real-money gaming services for US customers following the Unlawful Internet Gambling Enforcement Act.
- 2005
London Stock Exchange flotation
[1]PartyGaming became publicly traded after existing shareholders sold part of their holdings at an initial offer price of 116 pence.
- 2001
PartyPoker.com launches
[1]PartyPoker.com became the company’s flagship online poker service and the foundation of its shared player network.
- 1997
Online gambling operation founded
[1]The business associated with PartyGaming began operating in the Caribbean under the umbrella of iGlobalMedia.
Products and positioning
A large-scale online gambling network centered on internet poker, supported by casino, backgammon, and sports-betting services, with growth driven by shared-player technology, affiliated skin operators, and expansion into regulated European markets.
Online poker · 2001
PartyPoker.com
Launched in 2001, PartyPoker.com was PartyGaming’s flagship poker brand and the principal gateway to its shared online poker network. The network model allowed affiliated skin operators to connect customers to common poker tables, helping PartyGaming scale internationally. In 2005 the company introduced an upgraded platform that separated PartyGaming’s own player pool from the pools serving skin partners.
Online backgammon · 2006
PartyGammon.com
PartyGammon.com was an online backgammon service launched in 2006 as part of PartyGaming’s effort to broaden its product range beyond poker. It formed part of the company’s integrated gaming strategy, which sought to let customers move among different game categories through a common platform and account experience.
Online sports betting
Gamebookers
Gamebookers was an Antigua and Barbuda-registered sports-betting operator acquired by PartyGaming in August 2006. It focused primarily on European markets and gave PartyGaming a stronger position in online betting alongside its established poker and casino activities.
Online sports betting · 2010
PartyBets.fr
PartyBets.fr was one of the French online betting services for which PartyGaming obtained regulatory approval in June 2010. Its approval reflected the company’s shift from unrestricted international distribution toward participation in newly regulated national markets.
Controversies
2009
US settlement over pre-2006 customer activity
PartyGaming entered a non-prosecution agreement with the United States government, agreed to pay a US$105 million penalty over four years, and acknowledged that it had targeted US customers and processed transactions contrary to certain US laws before withdrawing from the market in 2006.
1990
Fairness concerns over early casino software
Testing of early blackjack and roulette games reportedly indicated that the outcomes were not fair to players. A company representative acknowledged that the odds had been too heavily tilted toward the house and attributed the issue to software flaws rather than intentional rigging. PartyGaming subsequently moved toward proprietary gaming software.
Brand decisions
2011
Merge with bwin Interactive EntertainmentM&ABackground
PartyGaming sought a broader international online gambling platform after regulatory disruption in the United States and expansion into European regulated markets.
Action taken
PartyGaming merged with bwin Interactive Entertainment in March 2011.
Aftermath
The transaction created bwin.party Digital Entertainment and ended PartyGaming’s status as an independent company.
2006
Acquire Empire Online skin operationsM&ABackground
Empire Online initiated legal proceedings after the restructuring of PartyGaming’s shared poker network.
Action taken
PartyGaming agreed to acquire Empire’s skin operations as part of a reported US$250 million settlement, while Empire discontinued its legal action.
Aftermath
PartyGaming later announced the acquisition of Empire Online’s remaining assets and also obtained the operations of IntertopsPoker and MultiPoker in separate private transactions.
Settlement and acquisition value. US$250 million (Announced February 2006)
2006
Withdraw from US real-money gamingStrategyBackground
The United States Congress passed the Unlawful Internet Gambling Enforcement Act, creating substantial legal and payment-processing uncertainty for online gambling operators.
Action taken
PartyGaming suspended all real-money gaming business with US customers while continuing free-play services and non-US operations.
Aftermath
The company’s publicly traded stock fell almost 60 percent in approximately 24 hours, and PartyGaming moved from the FTSE 100 to the FTSE 250 Index.
2005
Separate PartyGaming players from skin-partner playersStrategyBackground
PartyGaming had expanded through affiliated operators that shared its poker player pool, but the company sought greater control over its own customers and network economics.
Action taken
The company launched an upgraded PartyPoker.com platform that removed skin partners from the main player pool and left their customers on the previous system.
Aftermath
The change contributed to a dispute with Empire Online and led to subsequent settlement and asset-acquisition arrangements.
Sources1 sources
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