When PartyGaming raised £907 million (US$1.62 billion) in June its shares saw an immediate gain. Since those euphoric times reality, or perceived reality, has brought its share price to around 17% lower than the Initial Public Offering (IPO) price. Once Party Gaming had issued a profit warning and admitted lower than expected growth in its poker market, the value of other online operating companies fell.

888 Holdings, reputedly the world’s largest Internet casino operator, has sold 84.4 million shares at 175p – some US$261 million – in order to fund its expansion plans. This was considerably less than the originally anticipated US$500 million, and also less than its 15 September estimated US$375 million. The company, which operates PacificPoker and Casino-on-Net, has reported good figures for the first half of this year and is said to be on track with projected targets. Future plans include the reduction of reliance on US gamblers who presently account for around 55% of company revenue.

Predicting that in a relatively short time the online gambling industry will be consolidated, money from the IPO will allow 888 to finance acquisitions to ensure it remains a leading operator. The company will focus on the European and Asian markets whilst the US bans most forms of online wagering. At present one-third of 888 sales is from its poker business, where the highest growth had been expected, and overall 888 saw net gaming revenue of £13 million (US$23 million) last month. (E-09.29.05)

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