A party system of a gaming environment provides to users of the gaming environment parties of sizes that extend beyond the party size limitations of a video game. An extendable party can dynamically create subset parties of users for gameplay as needed, without requiring the party to be ceased. Therefore, an extendable party allows a subset of users, or multiples thereof, to enter into gameplay while maintaining the party as a whole. A party system, video game, or gaming environment can be configured to apply one or more rules or policies to a party that limit or alter a feature or function of an extended party, such as to prevent players among extended parties from providing or receiving competitive advantages.