Did PartyGaming Pick the Poker Peak?

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.

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Comments

  1. sdf says:

    “when PartyGaming w(H)enT public in a $9–billion”

  2. Bill Rini says:

    I might disagree. I think Party picked the peak in easy money. More people will be playing online poker next year than this year and I would expect the same trend to hold true for at least the next few years. Party simply sold when it knew that it had saturated the market in terms of brand awareness and thus would have to fight harder to capture new customers.