Hit on Empire Poker Harder Than
Predicted
Casino Conditions Staff
Empire Online is undoubtedly
taking a large hit after Party Gaming announced it
would not let Empire Poker players gamble at Party
Pokers planned release of a new poker table software
platform later this year. After first hearing
of the news, Empire reported that it would lose 10%
of its net profit and rake revenue if this were to
happen, which was quickly followed by a 5% drop in
the company's stock.
However, only one week after Party Gaming made this
decision, Empire Poker has lost nearly $500 million in its value and has
witnessed its stock drop nearly 50% on the AIM market of the the London Stock
Exchange.
It seems the blow will be greater than Empire imagined,
even though Party Poker's claim that online gambling was beginning to see a drop
in players, was thought to be a bit premature. Empire was Party Poker's
best affiliate, driving thousands of players to the online poker room every day.
Now, it is clear that Party Poker was worried they would not be able to
keep up with Empire's commission if a lull in players was to drop too low.
Despite this turn or events, the online gambling industry
as a whole is till going strong. SportingBet, who looks as if they could
be taking over Empire, posted a massive profit increase of nearly 400%.
Their net profits neared £40 million, which was an all-time high for SportingBet,
and a definite clue as to why Party Poker was worried it was losing online
players.
Back to Betting News Index
|