Avi and Aharon Shaked are reported to own about 70% of the firm through a family trust, while the Ben-Yitzhak family is said to own approximately 23%.

"Today's announcement marks an important step in our goal to become the market leader in the global online gaming entertainment industry and will enable us to increase further our brand profile, recognition and credibility," chief executive John Anderson said.

Rapid growth

The company, founded in 1996, said it had appointed HSBC to oversee the offering.

A number of online gambling groups have gambled on flotation recently amid rapid expansion in the industry fuelled by better broadband connections and gamers attracted by the convenience of playing at home.

Currently some 2,500 websites offer poker, sports betting, online casino games and bingo.

In June, Partygaming became the City's largest stock market debut for five years when it listed on the market at 116p per share - valuing the firm at £4.64bn.

The firm, which unveils half year results next week, is expected to enter the prestigious FTSE 100 next week in the latest reshuffle of the index.

Strong finances

Ahead of its float, however, Partygaming was hampered by concerns over US gaming laws - something 888.com has been keen to avoid.

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In a bid to ease concerns of investors, the group explained that 45% of its registered gamers - thought to number more than 20 million - lived outside the US.

It also opted to concentrate on the financial strength of the firm and the industry, revealing that its net gaming revenues for the six months to June was $123.7m - up from $83.4m a year ago - while estimates suggest the market generated revenues totalling $7bn to $10bn last year.

Meanwhile, according to sector specialists Christiansen Capital Advisors, the market could be worth as much as $24bn by 2009, 888.com added.

Money raised through the flotation will be used for acquisitions and hiring staff, 888 added.