"Online Casino 888.com Considers UK Float"
The growth in the Internet gambling industry has been
striking, with industry experts estimating even more phenomenal
growth in the future. There are a number of factors driving
this growth, among which are improved broadband and cellular
technology, the growing popularity of poker, and the ease
and convenience of being able to gamble from your home.
Internet gambling also appeals to a broader audience than
does traditional gambling venues, attracting younger and
more affluent players, as well as more female players,
than conventional casinos. Online gambling is also less
intimidating than regular casinos or betting houses.
It comes as no surprise then, that more and more Internet
gambling companies are deciding to list their companies.
An example of such a company is 888.com, which has listed
this year with a valuation of 830 million pounds (1.6 billion
dollars) and has hired Credit Suisse First Boston to prepare
the floatation. London seems to be the center of choice
for listing online gambling companies since London welcomes
the Internet gaming industry, whereas the U.S. has been
actively trying to restrain it. Ironically, the majority
of online gamblers are U.S. citizens.
It also comes as no surprise that
there is a great deal of shareholder and client interest
in online gambling companies as well as high level institutional
investors. From an investor’s standpoint, the online
gambling business has many attractive qualities compared
to normal businesses; there are no distribution costs,
no logistical problems, and no production, stock or storage
costs.
Moreover, it is estimated that the online gambling market
will grow to over $10 billion a year. It is expected that
Poker will drive most of that growth. Currently, sports
betting represents about 45% of the market and other online
gambling games represent 32%, but analysts are predicting
that Poker will surpass both of them by the year 2008,
if not sooner. Investors and analysts are also watching
the growth in Internet Bingo and skill games, anticipating
growth in these areas as well.
Peripheral businesses involved in Internet gambling,
such as CryptoLogic, a software company that develops Internet
games, and NETellar, an online payment processing company,
are also benefiting nicely from the Internet gambling industry.
All of these attractive growth stories are adding up
to quite a bright future for the online gambling industry,
an industry that serious investors are monitoring closely.
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