“What does the future hold for the current Internet gambling Sensation?”
It’s not surprising that a lot of investors are
considering buying shares in an Internet gambling company
gone public or stands to go public, with all the noise
being made about the industry of online gambling indicating
all the profits being hauled in from investing in the online
gambling industry. PartyGaming, the proprietor of PartyPoker.com
site is an example of such a company, and it is getting
ready to float for about four to five billion dollars on
the Stock Exchange in London. Extraordinary revenues are
being made from online gambling companies’ stocks.
For instance, in the space of two years Sportingbet witnessed
a jump in its shares to two hundred and ninety pounds from
eighteen pounds. As PartyGaming’s issue of initial
offering will only be permitted for specific
organizations a number of investors are going to be disappointed.
Until the shares begin trading private investors are going
to have to hang on before being allowed to purchase.
The outburst of online gambling popularity has a number
of causes, and the increase in women gamblers seems to
be one of them. Online gambling appeals to a lot of women
who would never dream of gambling at a land-based casino
when placing bets via the Internet is a much easier and
comfy manner to play. Starting the computer and accessing
an online gambling site is instantly satisfying to these
women. In fact, according to some assessments thirty or
forty percents of participants are women, although PartyPoker
puts the estimate at around ten percent.
The manager of UK equities at Hargreaves Lansdown Stockbrokers,
Richard Hunter remarks that the industry of Internet gambling
has become consensus and furthermore, once gambling used
to be cloaked in a sense of conspiracy. Today anyone from
his or her office or from the privacy of home can place
bets. Participating in an online poker game, or placing
a wager on virtually any sport together with financial
shares and indices is made by people who would never dream
of entering a land-based casino.
A lot of investors view the
online gambling market as a first class investment possibility
no matter what the cause are for its phenomenal popularity.
There is no assurance that the gambling industry will
continue with its financial profitability, some say,
and contend that this holds even if Internet gambling
is currently an accepted norm. The United States’ opposition to Internet gambling and
its unlawful state, according to Chartwell Investment Management’s
Ryan Hughes, endangers the entire industry of online gambling.
Hughes also indicated that if the United States does ease
its rulings on online gambling it could evolve into the
formation of huge American gaming concerns endangering
its British rivals by aiming to remove the latter’s
share of the market. Because the online gambling stocks
have risen so fast it’s not possible to know whether
they’ll be permanent.
Seven Investment Management’s Justin Urquhart Stewart
reiterates Hughes’ warning that just as the dot com
market was hit badly so the online gambling industry will
regress and deteriorate. Angst among the investors will be
caused by the fall of small companies if too many enter the
market and create a surplus. Swindling and laundering of
money is that dangerous part of the market which is unregulated.
Mr. Stewart further claims that if the share prices continue
to rise swiftly, the actual value of the business will not
match the stock market value and a typical mismatching will
occur.
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