Following the huge fortunes made by rival PartyGaming after its floatation on the London Stock Exchange last year comes the news that the number two in online poker is planning to do the same.

PokerStars, the second largest online poker site in the world, is owned by the Israeli family the Scheinbergs. According to industry reports, the Scheinbergs recently appointed a prominent London City bank, NM Rothschild, to either sell or float the company at a minimum price of 1.2 billion pounds sterling. The news has generated high levels of interest amongst potential investors, with signs pointing to the end of 2006 as a likely time for the firm’s floatation.

However if the decision to sell PokerStars is made instead, the Scheinbergs will still stand to reap a huge financial payoff. Expressions of interest have already been made from 888.com, also owned by Israeli families the Bet Yitzhak’s and the Shaked’s. Recently 888.com floated on the London Stock Exchange at nearly 600 million pounds. Further interested parties may also include old time gambling firms William Hill and the Rank Group, both of which are reportedly looking for ways to increase their involvement in online gambling.
 
PartyGaming’s 2005 floatation was the largest the Exchange had seen in years and its valuation of 4.64 billion pounds resulted in the company’s explosive entry onto the FTSE 1000 index. The profile and fortunes of its founder Ruth Parasol, a former porn industry boss, was also boosted considerably. However, unlike his counterpart, PokerStars creator Isai Scheinberg has a less colorful career. The former IBM programmer currently owns 75 percent of PokerStars along with his family, with employees owning the remaining 25 percent.

Like its main rival, PokerStars generates the bulk of its income from the United States where online gambling is illegal under federal law. Industry analysts believe that the huge rise in the popularity of internet gambling will ensure PokerStars enjoys immediate success, regardless of whether the company decides to float or to sell its interests to another competitor.

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