Industry News

iPoker Now Largest Non-US Poker Liquidity Pool

Playtech, the publicly-quoted owner of the iPoker network, has reported its interim results for the six months ending June 30, 2008. Poker revenues saw growth of $11.5 million to $22 million, an increase of 109 percent, compared to $10.5 million for the same period in 2007.

Chief Executive Officer, Mor Weizer, said, "In the first half of 2008, the Group achieved a significant milestone when its poker network became the world's largest non-US liquidity pool, attracting additional players to its network, and attracting more high-quality licensees. In addition, in line with the Group's strategy, it has established itself in various jurisdictions that are considering regulating various forms of online gaming."

Total revenue (which includes casino) grew by 85 percent from $44 million in the first half of 2007, to $81.4 million for the same period in 2008.

The development of the company's flash poker product is now complete, with the rollout planned for the third quarter of 2008.

PartyPoker Revenues Up Ahead of Poker Relaunch PartyGaming

PartyGaming, the Gibraltar-based publicly quoted gaming operator, has reported its interim results for the six months to June 30, 2008.

PartyPoker.com, which in terms of net revenue makes up 60 percent of the business, grew net revenue in the period by 6.4 percent to $153.9 million compared to $144.6 million a year previous. Clean EBITDA (earnings before interest, tax, depreciation, and amortisation) for poker leapt 57.9 percent to $36 million in the first six months of 2008, compared to $22.8 million between January and June 2007. Daily net revenue averaged $845,000.

Jim Ryan, CEO of the company said, "Our poker business continues to grow but is being held back by the continued competition from those sites that accept players from the U.S. The imminent relaunch of PartyPoker will be at the heart of…[our]… new initiative and should foster further growth of our existing franchise, whilst greater licensing of our technology will create new and, I believe, significant opportunities to grow revenue and profit."

New player sign-ups in poker averaged 993 per day, and there were on average 50,800 active players per day also, generating average gross daily revenue of $835,300.

Although poker revenues have grown year-on-year, PartyPoker.com lost market shares during the first six months of 2008 with the company blaming both competitor sites that offer real money games to players in the U.S., and other poker networks. It is estimated that in the week ending Aug. 24, 2008, PartyPoker.com had approximately 8 percent of the global online poker market, (compared to around 12 percent in August 2007).

Total net revenue across all business units which includes casino, bingo, sports betting, and financial trading grew 17 percent to $254.8 million in the period, compared to $217.4 million a year earlier.

Entraction Network Grows Poker Revenues

Entraction network, formerly 24hPoker network, has reported poker revenues up 29 percent from SEK110 million (€11.7 million) in the first half of 2008, compared to SEK85.5 million (€9 million) in the same period of 2007. Q2 2008 saw poker revenue rise 22 percent to SEK51.9 million on the same quarter in 2007.

The company, which boasts VC Poker, Pinnacle Sports, and Devilfish Gaming as partners, saw net sales across all business units (including sports betting and casino) grow 48.3 percent to SEK157.1 million between January and June 2008, compared to SEK106 million in the first half of 2007.

Entraction made an operating profit of SEK16.5 million in the first six months of 2008, compared to a loss of SEK12 million in the first six months of 2007.

Players Down But Poker Revenue Steady at 32Red

Gibraltar-based online gaming company 32Red.com reported stagnant poker revenues in its interim results for the half-year ending June 30, 2008.

The report showed poker revenues of £0.6 million during this six month period, the same as the corresponding period in 2007. This was despite its number of active players dropping from 10,662 in H1 2007 to 8,668 in H1 2008.

Poker yield per player explains how the company's poker revenue has managed to stay the same despite losing players - it has increased by £7 per player, from £57 during H1 2007 to £64 in H1 2008.

The company hit a record level of gross win for the period, with total gaming revenues of £6.6 million, an increase of 26 percent on H1 2007, and 32 percent on H2 2007. Poker represents just 8 percent of total group revenues as it continues to face increasing competition.

Analyst Predicts Consolidation in Online Poker Industry

James Hollins, an equity analyst at Daniel Stewart & Co. investment bank, has predicted that consolidation within the online poker industry is the likely outcome of companies striving for enhanced liquidity in the sector.

The report, entitled Gambling Sector August 08, says "The issue of poker site liquidity has emerged rapidly over the past 12 months. Given the desire for greater liquidity among several key and well-established operators, we would expect several groups to be in discussions with regards combining liquidity."

Consolidation has not been a prevalent feature of the 10-year-old industry to date, and the report identifies Lottomatica as the only significant driver of this trend with its recent purchase of Finsoft, Boss Media, and St.Minver.

However, it goes on to say, "…if we were betting folk, we would be focusing on the most attractive potential deals: Ladbrokes acquisition of Unibet; bwin Holdings acquisition of Sportingbet; merger of bwin Holdings and Unibet."

It points to the recent announcement by Ladbrokes Poker that it was opening some higher-stakes tables to the Microgaming network while retaining its lower-stakes tables within its own closed network.

Bwin's Poker Revenues Fluctuate as Costs Rise

Bwin's net poker revenues for the first half of 2008 have increased by 2.9 percent to €38.2 million from the same period in 2007.

Despite quarter-on-quarter results showing a gross increase of 3 percent, net revenues actually declined 5.4 percent. This is due to increasing betting duties, casino taxes, and customer bonuses.

The company added 76,354 new depositing real money players between January and June this year, bringing the total to 401,457.

Overall, net gaming revenues for the first half of 2008 have increased by 21.8 percent to €179.9 million. This increase is largely due to continuous growth in the sports betting sector.

Czech Minister Proposes Online Poker Ban

Czech Republic government minister Dzamila Stehlikova has told the Prague Post she plans to ban online gambling including poker.

The Czech government is currently drafting legislation to regulate gambling in the country but the newspaper said the Green Party, which is a junior partner in the ruling coalition, 'planned to push through a ban on gambling via the Internet and mobile phones."

Currently gambling in the Czech Republic is controlled by individual municipalities but the new bill will transfer responsibility to national law. The new law is expected by the end of 2009.

Ivobank Expands Into France, Germany, and Italy

Ivobank, the online bank targeting online gaming companies and enthusiasts which launched in July in Canada, the UK, Spain, and Ireland, has broadened its reach to include France, Germany, and Italy.

Ivobank, whose investors include the billionaire Indonesian Sampoerna family with a significant interest in gaming company Mansion, is believed to be the first independent bank to begin operations since 2001.

The bank is offering secure online payments and money transfer services 24/7 via telephone, live chat, and secure email and customers can use the Ivobank Virtual Card (compatible with the MasterCard network) for payments and transfers. All funds are insured and settled immediately at any time of the day or night and instant international money transfers from customer accounts to family or friends are free of charge.

Ivobank is regulated by the Financial Services Authority in the UK. Customers can sign up at Ivobank.com.