Poker News

Ending a relationship that dates back to the beginning of the online poker industry, Party Gaming co-founder Anurag Dikshit has divested himself of any ownership in the company with the sale of his remaining stock on Tuesday.

According to the London Stock Exchange and the British newspaper The Telegraph, Dikshit owned slightly more than 38.8 million shares of Party Gaming PLC, which is traded in London under the symbol PRTY. Because of his ownership of the stock, Dikshit held voting rights that would have continued to hold a significant influence on the company’s track. With the sale, however, Dikshit has fully divested himself of any connection with the company he helped start back in the late 1990s.

The 38.8 million shares of Party Gaming stock held by Dikshit amount to £114 million and helped to drive the price of Party Gaming PLC up during trading on Tuesday and Wednesday. Opening at 277.10p at the start of trading Wednesday, Party Gaming PLC trended up 14.2p over the course of the day, finishing at 292p.

It is estimated that Dikshit has cashed out stock in the company that eclipses £700m in value. Through his involvement with Party Gaming, Dikshit has also become one of India’s wealthiest citizens. With the sale of his remaining ownership in the company complete, Dikshit is expected to return to the many philanthropic trusts that he oversees, including those that fund medical and educational interests in India.

Since the creation of Party Gaming in the late 1990s, Dikshit had been a formative figure in the company. Along with husband and wife Russ DeLeon and Ruth Parasol as well as Vikrant Bhargava, Dikshit – who was the creator of the Party Gaming software that the company uses – drove the company to reach the pinnacle of the online poker industry with PartyPoker. By 2005, when the foursome took Party Gaming public on the London Stock Exchange, PartyPoker had even become a force in the live poker world with a sponsorship deal at the World Series of Poker (WSOP).

2006 proved to be a pivotal point for the company, however. With the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) by the American government, Party Gaming was forced to prohibit American players from participating on PartyPoker (as a publicly traded entity, it could not violate the laws of another country and remain on the LSE). Since that time, Party Gaming has been passed in the online poker industry by two rooms that still accept American players, PokerStars and Full Tilt Poker, and battles for the third spot consistently with another non-U.S. facing entity, the iPoker Network.

Dikshit has been the only founder of Party Gaming to ever face American authorities as far as their gaming actions are concerned. After the passage of the UIGEA, The Telegraph reports that Dikshit was “increasingly worried about the ramifications of the company’s operations being declared illegal in America” and stepped down as the director of Party Gaming. This led to his admission of guilt in December 2008 in a U. S. court to violating laws regarding online gaming. Still facing the possibility of two years in jail for his guilty plea, Dikshit has paid $300 million in fines and, according to Justice Department officials, has been assisting them in their ongoing investigations. Whether Dikshit will face any jail time when the case is reviewed in December 2010 is still unknown.

The sale of Dikshit’s remaining stake in PartyGaming comes at a time when the company is looking at several merger options, according to The Telegraph. The outlet states that PartyGaming is “continuing to hold discussions with a number of companies in the gaming sector regarding potential consolidation opportunities” and speculates that industry competitor bwin is a possible merger partner.

One Comment

  1. Mike Knapp says:

    Hello
    I am looking to contact Anurag Dikshit.
    Do you possibly have an email address for him.
    Thank you kindly.
    Mike

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