Partygaming, the world's biggest online poker company, has started talks with four continental European banks to assist with a potential $10billion London float later this year.
The Gibraltar-based company, which owns the PartyPoker.com site, is still deciding with its adviser Dresdner Kleinwort Wasserstein whether to float.
However, it has already begun talks with German banks Commerzbank and HVB, Spain's BBVA and Mediobanca of Italy about forming a syndicate to sell shares to investors.
DKW is expected to act as the global co-ordinator and broker should a listing go ahead. PartyGaming has been forced to turn to European banks as the top US banks are unwilling to support an online gambling company because of American regulations.