Speculation on Online Casino Firm’s Future
Since January, speculation surrounding the future of online casino poker site Poker Stars has been commonplace. The rumors began when the online casino operator hired London stock broking firm NM Rothschild to guide its decision on whether or not the firm should follow the lead of fellow poker operator Party Gaming and list its stock on the London Stock Exchange.
However, up until now the online casino poker company has kept everyone guessing. Will the firm float, sell or continue as it is?
According to industry analysts, a public listing could increase the online casino firm’s value to approximately $2.5 billion to $3 billion U.S. dollars, setting Poker Stars on a par with main competitors 888 Holdings and Party Gaming. The online casino operator is currently recording profits of over $200 million per annum. The firm’s principal shareholders are the Scheinberg family from Israel, who own 75 percent of the company. The remainder of the online casino firm’s shares belongs to Poker Stars’ employees.
Online casino firms continue to draw investor awareness on both the London Stock Exchange and the London Alternative Investment Market in 2006. Full Tilt Poker is said to be in talks with brokers and the imminent floatation of software firm Playtech is already generating record interest. However, while prospects for the online casino industry look mostly positive, current attempts to introduce further legislation in the U.S. Senate could affect share prices.