Online Casino Company PartyGaming Drops as Dikshit Unloads

First Anurag Dikshit broke ranks, giving the US government hundreds of millions to end an investigation into his part in establishing online casino operator PartyGaming; now he is dumping the company's stock, causing a steep drop in value.

PartyGaming, the European online casino, poker, and sports betting operator, plummeted in value today as word escaped that co-founder Anurag Dikshit is placing a majority of his shares up for sale. Dikshit owns over a quarter of PartyGaming, and is dumping two-thirds of his personal investment in the gaming firm.

Reports broke this morning that Dikshit will sell roughly 75 million shares in PartyGaming. His 113 million shares held outright represent the largest single investment in the online casino operation.

Ruth Parasol DeLeon and Russell DeLeon, the other two founding officers of the gambling company, each own about 58 million shares, or about 14 percent of all outstanding shares.

Dikshit's move caused PartyGaming stock to drop over 13 percent of its value in mere hours. The Internet casino company is listed on the London stock exchange.

The 75 million shares would have netted Dikshit about $350 million at yesterday's closing price, but could have caught the market drop, which would cost Dikshit as much as $50 million on his price.

Despite never being indicted by US courts, Dikshit agreed last year to plead guilty to charges of operating illegal gambling and accepted a $300 million forfeiture to the US government, in order to end the US investigation into his activities. Prison sentencing has been suspended, but may still occur.