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Journalism of Courage
Monday’s flotation of online casino PartyGaming has made more than $1 billion for a former US pornography entrepreneur, her lawyer husband and two Indian technology graduates.
The four brains behind the world’s biggest online poker operator, which was founded just eight years ago, will cash in shares worth about $1.4 billion in total in the initial public offering (IPO), and keep stakes worth over $6 billion at current valuations.
But the windfall does not come without risk. PartyGaming’s listing prospectus said its directors risk jail if US moves to clamp down on online gaming are successful, resulting in potential criminal or civil action.
“If successful, such actions may result in remedies such as injunctions … fines and imprisonment,” the prospectus said.
Founder Ruth Parasol is no longer a director of the company but she is no stranger to controversy. She made her fortune originally from running premium rate adult chat lines and adult entertainment websites, before turning her back on the industry and switching to online gaming in 1997.
Parasol and her husband Russell de Leon, both lawyers, are each set to cash in around $370 million and still own a combined stake worth about $2.7 billion. Parasol and de Leon now act as legal consultants to the Gibraltar-based firm.
Anurag Dikshit, group operations director, is the biggest shareholder. He will cash in shares worth about $720 million and still own a 30 per cent stake worth over $2.6 billion.
Marketing director Vikrant Bhargava’s remaining 9 per cent stake and cash from the IPO should be worth almost $1 billion.
The four major shareholders, all in their 30s, are famously publicity shy, despite being thrust into the limelight by the flotation.
Dikshit was the driving force behind developing PartyGaming’s user-friendly platforms, while Bhargava masterminded the strategy for pulling in players to PartyGaming’s sites.
Both men are expected to remain with the company.
—Reuters
