Poker Stars Moving To Isle Of Man
Published: Friday, August 05, 2005 Online-Casinos.com
POKER STARS MOVING TO ISLE OF MAN
And inevitably, rumours that a London listing is planned
Following UK media speculation this week, Online-Casinos.com & InfoPowa
contacted the management at second ranked online poker site Poker Stars to ask
for confirmation that the company was moving to the Isle of Man. We also asked
whether speculation that a London listing was planned had any foundation, who
the broker would be and what sort of listing price we might expect.
In a prompt and courteous response, the company confirmed that it has obtained
a license in the Isle of Man and would be moving to that jurisdiction in the
near future. However, the response emphasised that the company would not comment
on speculation regarding a listing - a fairly standard response under these
circumstances.
Poker Stars is owned by an Israeli family called Scheinberg and has been based
in Costa Rica. It is understood that a new CEO who will operate from the Isle
of Man is currently being sought.
It is believed that the IOM's action in removing bans on its licensees accepting
US bets was an important incentive for Poker Stars to make the big move.
The company reportedly has an estimated 8 percent share of the market, compared
with PartyGaming’s 54 percent, and Cassava Enterprises (Gibraltar) Ltd.’s
6 percent (through its PacificPoker brand). “The Times” says PartyGaming
has obtained a license from the government of the Isle of Man and plans to move
to the island later this year as well.
Founded in 1999, PokerStars is considered a pioneer of online poker, together
with ParadisePoker, which currently has a 5 percent share of the market. Media
sources claim that PokerStars’ rake (commission from players) is $400,000-500,000
a day, its annual turnover is $150 million, and its net profit margin verges
on 50 percent.
If PokerStars holds an IPO, it will reportedly be at a company value in excess
of $1 billion.
Analysts covering public online gaming companies believe a listing would enable
Poker Stars to become one of the industry’s main consolidators. One analyst
said, “There are more than 1,000 internet poker sites, but in three or
four years I would expect there to be no more than 50 or 60. As growth slows,
so consolidation will become the name of the game.”
