“PartyGaming: Bigger than British Airways and Boots”

Chief Executive Officer of PartyGaming, Mr Richard Segal, admits to being delighted by his company’s success on the London Stock Exchange. When PartyGaming – owner and operator of PartyPoker.com – officially went public, its shares were valued at 116 pence each. By the close of business on its first day of trading, PartyGaming shares had increased in price to 129 pence. “The listing will reinforce the group’s position as one of the world’s leading online gaming companies,” says Segal. “…and enhance the group’s profile as we seek to expand internationally.”

PartyGaming’s valuation now eclipses those of two of the largest British companies – the retailer Boots and British Airways. The company’s strong performance will also result in its inclusion on the FTSE 100 index expected to take place in autumn.

Speculation concerning PartyGaming’s entry on to the London Stock Exchange was rife; however the initial share offering was made only to large investors with the utmost confidentiality.

Although the PartyGaming share continues to be undeniably attractive to potential investors, some fund managers have been urging caution. One such group is Barclays and Clay who have warned clients against purchasing shares in PartyGaming, citing the fact that there are too many question marks related to PartyGaming’s prospects in the future.

These concerns in general are based upon the ambiguity of North American legislation related to online gambling. As over 90 percent of PartyGaming’s revenue comes directly from the United States, fund managers are concerned that legislation prohibiting online gambling could seriously reduce PartyGaming’s ability to generate large profits. Along with the company’s vulnerability concerning prospective legislation, some fund managers are also wary of the hype surrounding the highly competitive online poker industry and fear it could be just another fad.

However, these concerns have in no way influenced PartyGaming’s game plan. With a large slice of the online poker industry under its belt, PartyGaming is seeking to replicate its domination of poker in the casino and bingo sectors. Its two brands – Starluck Casino and Party Bingo – are being heavily marketed, with PartyCasino being launched in the first quarter of next year. PartyGaming plans to make PartyCasino one of the most accessible casinos to play at by investing in software that will allow players to experience all of PartyCasino’s games on one platform.