Did PartyGaming pick the poker peak? (Try to say that ten times fast.) It sure seems like online poker peaked almost precisely when PartyGaming went public in a much-ballyhooed $9–billion IPO on the AIM this summer.
Consider this latest news:
PartyGaming shed more than 11% to hit a new low of 71p, almost 40% below its June flotation price. It was not helped by Empire’s comments that the overall poker market is “flattish”.
That heightened fears, first raised by PartyGaming’s warning of a slowdown last month, that the online poker phenomenon may have peaked. Sportingbet, owner of Paradise Poker, lost 7% and freshly floated 888, which operates Pacific Poker, fell 11%.
While the optimist in me wants to believe that this will mean a tailing off of online poker spam, the realist recognizes that desperation in a declining market will more likely lead to a paroxysm of such stuff instead.