“PartyGaming Paves the Way for Internet Poker Companies in London”

PartyGaming’s announcement that it intends to go public on the London Stock Exchange, along with news on its subsequent valuation, has sent waves through the financial markets. Analysts predict that PartyGaming stock could reach a total value of 5.5 billion pounds sterling, or ten billion U.S. dollars. This value eclipses the record sum set in London by Friends Provident in July 2001. PartyGaming stock will also be included on the MSCI and FTSE indexes.

This news has reinforced speculations on the rapid rise of internet poker fortunes given the current boom in the poker industry. Along with the online poker industry, gambling in general has seen phenomenal rates of growth, with the London Stock Exchange being the world’s preferred location for online poker operator listings.

PartyGaming, owner and operator of the PartyPoker website, has enlisted Dresdner Kleinwort Wasserstein to manage the deal. Dresdner proved its ability to facilitate successfully on behalf of its clients when it assisted Sportsbetting to take over the Paradise Poker website. With its new relationship with PartyGaming, Dresdner looks set to cement itself as the leading advisor to companies in the internet gambling industry.

Hot on PartyGaming’s heels are an additional two internet gaming companies also planning to float their stock on the London Stock Exchange this year. 888 Casino.com in a partnership with Credit Suisse First Boston have advised they plan to float at 1.6 billion dollars. Empire Online has also announced its intentions to join with a valuation of 1 billion dollars.

PartyGaming and its rivals have good reason to celebrate their debut public appearances. In a report commissioned by Edison Investment Research and Durlacher, gambling revenue exceeded 8 billion dollars in 2005. This figure represents an increase of 37 percent from 2004. London’s position as the online poker industry’s capital continues to solidify. With the United States’ ambiguous legislation concerning online gambling and the recent technological advancements that have taken place on the British scene, the online poker industry continues to go from strength to strength.