PartyGaming founder sells before sentencing

The co-founder of PartyGaming, who faces sentencing next year for violating US gambling laws, is to sell his stake in the online gaming company.

Anurag Dikshit's holding company said yesterday it had sold two-thirds of his 27.6 per cent stake to institutional shareholders, taking his holding down to 9.4 per cent. A spokesman for the billionaire, who helped to set up Party-Gaming in 1997, said: "The rest will be sold down when it is appropriate to do so and that will be soon."

Mr Dikshit pocketed £188m from the initial sale at 250p a share. Shares in PartyGaming fell by 16 per cent, or 44.4p, to 240.1p yesterday, but analysts said the stock should benefit from the increased free float in the longer term. The spokesman said Mr Dikshit was selling the shares to transfer money into his charitable foundation, the Kusuma Trust, and to distance himself from that "chapter of his life". He is due to be sentenced in December 2010 after pleading guilty two years ago to breaking US gambling laws.

He paid a $300m fine in June after reaching an deal with prosecutors, and many in the industry believe he will avoid jail. James Hollins, an analyst at Daniel Stewart, said: "The assumption and informed view is that the fine will be enough of a slap on the wrist for him to be allowed to go on his way."

Mr Hollins said the main "positive" of the sale was to increase the free float of its shares on the market.

PartyGaming, which is headquartered in Gibraltar and best known for its online poker room PartyPoker.com, left the US gambling market in October 2006 after Congress enacted the Unlawful Internet Gambling Enforcement Act that month. In April 2009, PartyGaming signed a non-prosecution agreement with the US Department of Justice to pay $105m in instalments for offering internet gaming in the US from 1997.

Independent Comment
blog comments powered by Disqus
News in pictures
World news in pictures
       

Day In a Page

Johnny Marr talks relationships and reunions

He's worked with Modest Mouse, the Pet Shop Boys and Beck, to name a few, and recently released his first solo album. So why, wonders Johnny Marr, do people still hark on about The Smiths?
After the flood: From Haiti to Britain, one man has captured the devastation of our increasingly deluged lands

In pictures: After the flood

From Haiti to Britain, one man has captured the devastation of our increasingly deluged lands
Death becomes her: Meet the very modern mortician who champions 'cool' funerals

Death becomes her: A very modern mortician

Ever considered baking a loved one's remains into a cake or putting their ashes in fireworks? If so, talk to Caitlin Doughty, champion of the alternative death industry.
How long can the 'Keep Calm' trend carry on?

How long can the 'Keep Calm' trend carry on?

At first it seemed clever and cute. Then the 'Keep Calm' motif went mad, spawning endless offshoots.
The man who built Brum: A lament for the demise of John Madin's Brutalist Birmingham

John Madin: The man who built Brum

The architect's buildings were supposed to leave an indelible, futuristic mark on his beloved hometown but they are now being inexorably torn down.
School of chop: Learning the art of butchery at the Ginger Pig

School of chop: Learning the art of butchery

How do you butcher a lamb? Or make Mexican street food in a British kitchen? Christopher Hirst finds out.
James Pembroke: The man who's eaten everywhere

The man who's eaten everywhere

Few people know more about restaurants than James Pembroke, who only spent five mealtimes at home during his entire childhood.
A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?

A Berliner in 1963 – but did John F Kennedy once admire Adolf Hitler?

The young JFK praised 'superior' Nordic races during visits to Germany
Banned Iranian director Mohammad Rasoulof to attend Cannes Film Festival 2013, his first public appearance since prison

Banned Iranian director to attend Cannes Film Festival

Mohammad Rasoulof to make his first public appearance since being imprisoned three years ago
Seeing the larger picture: Inspiring images of space

Seeing the larger picture: Inspiring images of space

An exhibition explores images how photography has shaped astronomy
Eat Spam and carry on: Wartime pamphlets could teach us a thing or two about healthy, thrifty eating

Eat Spam and carry on

Wartime pamphlets could teach us a thing or two about healthy, thrifty eating
Facial hair: Cat beards and the purrrsuit of excellence

Facial hair

Cat beards and the purrrsuit of excellence
The 10 Best salt and pepper sets

The 10 Best salt and pepper sets

Whether they're for everyday use or to make your dining table look just right, it's worth getting a stylish shaker...
Ferran Soriano: Predicting success if Manchester City 'vision' is followed

Ferran Soriano: Predicting success if Manchester City 'vision' is followed

Chief executive says trophies will come if a 'core' of suitable players is in place
Thomas Müller: We couldn't handle losing a Champions League Final again

Thomas Müller: We couldn't handle losing a Champions League Final again

The Bayern Munich forward tells Tim Rich his side have to shed chokers' tag after two recent final defeats