[Rudbaeck]

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The detail page on the PRNG they use is much more specific, and it is definitely continuous-run:

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PartyPoker.com uses a secure RNG (SHA-1 cryptographic hash algorithm) implemented by SUN which is cryptographically certified. SUN's SeedGenerator class generates the initial seed. The seed is produced by counting the number of times the VM manages to loop in a given period.The samples are translated using a permutation (s-box) and then XORed together. This process is non linear and prevents the samples from "averaging out".

The s-box is designed to have even statistical distribution. A number of sleeper threads are also created which add entropy to the system by keeping the scheduler busy.These are gathered in the background by a daemon thread thus allowing the system to continue performing it's different activities, which in turn add entropy to the random seed.The class also gathers miscellaneous system information, some machine dependent, some not.

This updated seed is then used for dealing cards during each card dealing round.

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The last part is key: updated seed used to deal cards curing each dealing round; that means the PRGN is called separately for deal, flop, turn, and river.

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No, 'updated' refers to them adding more entropy to the original seed generated by the Sun SeedGenerator. It does not mean a new seed is used for each card dealing round unfortunately. Please re-read the passage.