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Bwin.Party Founders to Sell Shares in Order to Obtain NJ License

Bwin.Party Founders to Sell Shares in Order to Obtain NJ License

Two of the original founders of Party Gaming, Ruth Parasol and her husband Russ DeLeon, have reached an agreement with the New Jersey Gaming Enforcement to sell their shares in Bwin.Party ahead of it being awarded a license to operate in the state.

Bwin.Party Founders to Sell Shares in Order to Obtain NJ License

Two of the founders of Bwin.Party have reached an agreement to sell their shares so the company can receive a New Jersey gaming license.

The couple, who are in the process of divorcing, would have had to apply for a separate licence from New Jersey authorities as the law requires all substantial shareholders in companies requesting a license to do. However, Parasol and DeLeon decided to put their 7% state each in trust and sell them over a three year process. The decision means that Bwin.Party can now make the license application.

It is thought that the company will receive a license fairly quickly so that it can provide the Borgata Casino in Atlantic City with online poker and casino software.

The state’s igaming industry is set to launch later this month and authorities will soon be announcing which software providers can join the industry on the go-live date.

An analyst broker at Numis Securities, Ivor Jones, said, “We believe that if this preliminary step is being announced it is more likely that bwin.party will be eligible to start operations in New Jersey in November.”

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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