Rumors Fly Again With Regard To New Online Poker Card Room Pokerstars IPO

In January of this year, online poker room Pokerstars was at the center of intense speculation. This occurred when NM Rothschild, a leading London broker, was hired by the world's second largest online poker company hired to guide it in its deciding as to whether to continue as is, to put itself up for sale, or to launch an IPO. The topic then went quiet, amid rumors of behind the scenes buying offers, only with further talk of a London listing, to re-surface this week.

75 percent of PokerStars is owned by the Israeli Scheinberg family. The remainder is held by its employees. But there have been no responses to a media enquiry about the new interest in a listing.

Analysts who are discussing the issue are also speculating that a listing could raise between US$2.5 billion and US$3 billion. This would give PokerStars an overall value right up there with such web sites as Party Gaming, 888.com and other company that are at the top of the totem pole. The profits generated by PokerStars are reported to stand at about US$200 million a year. When it comes to tournaments and promotions involving millions of dollars, the company is for sure in the big money league.

This year, after an exciting 2005, London listings have continued to enjoy popularity. One company that recently had a successful opening is Excapsa. There are reports that Full Tilt Poker has been talking to brokers and financiers. Others reports by many indicate that the Playtech IPO is set for late March or by April at the latest.  On the downside, in the States, the ongoing attempts to block online gambling might introduce a dampening effect. European executives however, have expressed doubts that in the face of the millions of Americans who routinely play online and with the continued growth in the business, such a ban would be passed. Just last year the industry enjoyed revenues of at least $10.9 billion and there are few signs of its slowing down.

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