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Online Poker Deals Punters a Bad Hand

There were 27 pages of risk warnings in the prospectus for the flotation of PartyGaming, the online poker company, covering everything from the threat of regulation in the US to the prospect of its directors being jailed.

But none mentioned the risk that, just three months after flotation, the directors would discover its growth rate was slowing and that the amount it was making from each poker player was falling.

PartyGaming was supposed to be the hottest growth story around. True, no one was promising the market could continue to grow at the 366 per cent achieved last year, nor even the 100 per cent predicted by industry analysts this one.

But the profits warning breaks what one banker describes as rule number one of new issues: make sure the first announcement after the float does not disappoint. ‘In fact,’ he adds, ‘rules two three and four are exactly the same.’

Read the entire article at: The Observer 

2005 Online Casino News Archive


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