Prediction Markets, Collective Intelligence, Innovation and Growth
PartyGaming PLC said Tuesday it has reached a non-prosecution agreement with U.S. authorities over its defunct operations there, with the online gambling group agreeing to pay a $105 million… fee.
5 thoughts on “PartyGaming PLC said Tuesday it has reached a non-prosecution agreement with U.S. authorities over its defunct operations there, with the online gambling group agreeing to pay a $105 million… fee.”
Early euphoria was short lived, however, when it became clear that PartyGaming had also reported a significant downturn in revenue across all business sectors (casino, poker, bingo, sports book etc). The unexpected deterioration, raised serious questions as to just how resilient the online gaming sector really is. Accordingly, punters who had blindly steamed into the stock on the back of the US settlement news, had their fingers burnt, as the professional men in dark glasses quickly sold the stock of, citing two factors; firstly, the fact that severe sectoral downturn is unlikely to be fertile territory for consolidation; second – this deal does not mean that PartyGaming is going to be entering the US anytime soon.
A clear case of buy on rumour, sell on fact – shares in Party are 6% down on the day, at the time of writing.
PartyGaming has also published First Quarter Key Performance Indicators. Continuing revenue decline. Group revenue of $100.1m (2008: $128.9m). Poker revenue of $53.6m (2008: $80.7m). Casino revenue of $40.9m (2008: $42.3m). Sports Betting revenue of $4.5m (2008: $4.7m). Bingo revenue1 of $1.0m (2008: $1.2m).
http://techdirt.com/articles/2…..4424.shtml
Early euphoria was short lived, however, when it became clear that PartyGaming had also reported a significant downturn in revenue across all business sectors (casino, poker, bingo, sports book etc). The unexpected deterioration, raised serious questions as to just how resilient the online gaming sector really is. Accordingly, punters who had blindly steamed into the stock on the back of the US settlement news, had their fingers burnt, as the professional men in dark glasses quickly sold the stock of, citing two factors; firstly, the fact that severe sectoral downturn is unlikely to be fertile territory for consolidation; second – this deal does not mean that PartyGaming is going to be entering the US anytime soon.
A clear case of buy on rumour, sell on fact – shares in Party are 6% down on the day, at the time of writing.
PartyGaming has also published First Quarter Key Performance Indicators. Continuing revenue decline. Group revenue of $100.1m (2008: $128.9m). Poker revenue of $53.6m (2008: $80.7m). Casino revenue of $40.9m (2008: $42.3m). Sports Betting revenue of $4.5m (2008: $4.7m). Bingo revenue1 of $1.0m (2008: $1.2m).
Poker revenue is falling off a cliff.
Poker revenue of $53.6m (2008: $80.7m).
Sports Betting is doing not that bad.
Poker was a fad.