PartyGaming Sheds Skins; Empire Online Optimistic
12 October 2005
PartyGaming, an online gaming company with a focus on poker, has announced that it will move its nine million players to a new operating platform. Players, who until now have accessed PartyGaming’s technology through the company's skins, such as Empire Online, which operates the white label site Empire Poker, are being "left behind" in the move. These players will not be able to play on the new platform, but will still be able to remain on the current platform. The move has caused great turbulence in the online gaming sector. PartyGaming’s white label sites will now not only have to battle for new players, but it’s likely that they’ll have to fight to keep established players, as well.
Empire Poker reportedly plans to remain on the old platform, at least for now. An industry expert predicted that PartyGaming's actions could cause many of Empire's players to flee, as instead of playing with PartyGaming’s nine million players, Empire Poker players will be up against a significantly diluted player base. With tension and competition mounting for some time between the two companies, Empire apparently anticipated a move of this kind. Seemingly as a way to ensure growth regardless of its relationship with Party, Empire recently purchased Club Dice Casino, as well as the rights to online poker room Noble Poker, which in its mere 9 months of existence, has demonstrated superior performance. This will likely be Empire’s saving grace, allowing the company to be less dependent on its partnership with Party.
It seems that the world of online gambling is receiving one blow after another. Investors seem to be having second thoughts as they begin to believe that online poker might have already reached its peak and is now on its way downward. PartyGaming's shares dramatically dropped in June, and the company's worth has recently hit an all time low of less than ₤3 billion. Not long after delivering a relatively flat IPO, 888, which operates Pacific Poker, fell by 11%. Empire, which was estimated as being worth ₤800 million just a month ago, slumped down to a value of ₤350 million.
Despite everything, Empire seems to be optimistic. The company, which is one of the largest in the online gaming sector, recently released its third quarter results, reporting dramatic growth in revenues and player statistics. This noteworthy performance comes at a time when many competitors have not fared as well (for more information, visit http://investors.ep.com/Q3_Trading_Update.htm).
In a company press release, Empire Online CEO Noam Lanir denoted his company’s reasons for optimism:
"We are delighted in our strong trading and the strategic advances we have made during the third quarter. In a period where there has been much uncertainty over potential growth rates in the online gaming industry as a whole we believe our results demonstrate the strength of our core marketing skills. By diversifying our distribution channels, we have laid the foundations for sustainable long term growth, ahead of the market, across the Empire Online network. We are determined to pursue industry-consolidating opportunities as they arise. “
Source: Authorized Online Casinos News Staff
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