yGaming founders Ruth Parasol and Russell DeLeon have decided to sell their shares in online operators BwinParty rather than submit individual internet gaming licence applications in New Jersey.

BwinParty have applied for a Casino Service Industry Enterprise Licence with the New Jersey Division of Gaming Enforcement (DGE), a process which requires certain substantial shareholders of the firm to either submit individual licence applications or otherwise dispose of their shareholdings.

Emerald Bay Limited, wholly-owned by Parasol, and Stinson Ridge Limited, wholly-owned by DeLeon, have therefore entered into a divestiture agreement with BwinParty and the DGE. Both firms own just under 58.5m BwinParty shares, or 7.16% of the company.

In order to participate in the New Jersey online gaming market when it opens, while their licence application is still being considered, BwinParty need to obtain a transactional waiver from the DGE. Under the terms of the divestiture agreement, the granting of said waiver will trigger the placement of the shares into trust.

The shares will be put into divestiture trusts through which they will be divested over a period of up to 36 months “in one or more transactions at times to be determined”.

The divestiture arrangements are subject to BwinParty receiving and maintaining a New Jersey online gaming licence.