Two PartyGaming Founders Leave Board

In April, internet poker giant, PartyGaming, announced that its then CEO, Richard Segal, would be stepping down. Yesterday, the company announced that two more of its top executives would be leaving the company.

Two PartyGaming founders, Anurag Dikshit and Vikrant Bhargava, have decided to leave their executive positions and their seats on the board of directors. Dikshit, the Group Operations Director, will remain with the company as Head of Research and Special Projects. Bhargava will be leaving PartyGaming altogether at the end of 2006, but plans to be available in an advising role.

Dikshit and Bhargava own approximately 39 percent of the company combined. PartyGaming has a market capitalization of over £5 billion.

Below is a statement from PartyGaming about the developments.

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23 May 2006
PartyGaming Plc

Board Changes and New Management Structure

PartyGaming Plc, the world’s leading online gaming company, today announces two Board changes and a consequent reorganisation of senior management roles to reflect the continued development of the Group.

The Board has accepted a request from Anurag Dikshit, Group Operations Director and one of the original founders of PartyGaming, that he step down from the Board in order to focus on the development of new products and platforms with the objective of further enhancing PartyGaming’s leading position in online gaming as Head of Research and Special Projects.

Mr. Dikshit’s existing responsibilities will be allocated between Bhagwan Dass Goel, Group Technology Director, and Joel Leonoff, who will be appointed to the revised role of Group Operations Director. Mr. Goel and Mr. Leonoff have both been appointed to the Group’s Executive Committee, reporting to Mitch Garber, Chief Executive Officer. It is not intended that Mr. Dikshit’s position on the Board will be filled, thus re-establishing the balance between independent and non-independent directors in compliance with the Combined Code.

In addition, Vikrant Bhargava, Group Marketing Director and a founder of PartyGaming, has informed the Board that he wishes to step down from the Board and leave the Company at the end of the year. It is envisaged that, while Mr. Bhargava is keen to pursue a variety of other interests, he will continue to be available to advise the Group after he leaves the Company.

Commenting on the changes, Michael Jackson, Chairman of PartyGaming, said:

“Today’s announcement reflects the continuing transformation of PartyGaming from a small entrepreneurial business into one of the world’s leading internet businesses. We are delighted that in his new role, Anurag will now be free to help develop the next generation of products and platforms. We are also pleased that Vikrant, with his considerable knowledge and experience, will continue to retain his close association with PartyGaming.”

In a joint statement, Mr. Dikshit and Mr. Bhargava said:

“Deciding when to reduce the level of executive responsibility is one of the most difficult decisions that entrepreneurs have to make. The technology, operations and marketing teams at PartyGaming have both strength and depth and we are confident that they will continue to flourish. Accordingly, both we and the Board now feel that the management infrastructure is in place to allow us to step down from our current roles. We are delighted with the recent appointment of Mitch Garber as Chief Executive Officer. His knowledge of our business and the online gaming sector, coupled with the strength of the supporting management team, means that the Group is in good hands.”

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Originally published May 24, 2006