bwin.Party Founders Divorcing but Shares Placed in Trust

Admin. - November 6, 2013

Industry

Soon-to-be exes put bwin.Party shares in trust.

Two founders of bwin.party, who are getting a divorce, James Russell DeLeon and Ruth Parasol DeLeon, have agreed to put their shares totaling over 14 percent of the company into trust until the shares are sold over the next three years.

This action will allow bwin.party to go forward with obtaining a license to operate online gaming in New Jersey, the third state in the union to offer that activity (the others are Nevada and Delaware). New Jersey differs from Nevada in that it will authorize many forms of online gaming, while that state allows only online poker.

Gaming License Application Submitted

The placing of shares into trust was made as part of an agreement with the state's Division of Gaming Enforcement. Part owners of companies that apply to run gaming operations in the state must submit individual gaming license applications.

The DeLeons preferred not to have their private lives open to fine toothcomb scrutiny that potential gaming operators normally have to endure.

To industry observers this agreement makes it likely that bwin.party will be granted a license to operate online gaming in the Garden State. It applied for the license several months ago. It would join Borgata Hotel Casino & Spa and MGM Resorts, in being granted the license to offer the activity within the boundaries of the state.

The news caused shares in the company to tick up 2 percent.