Why Online Poker Isn't Dying

[Kyle]

When Party Poker executives recently claimed that the online poker boom was fading, it sent waves of conversation about the future of online poker throughout the poker affiliate industry. Lately rumors have been floating around indicating that Party Poker may not have been completely honest with that comment. But why would they want to do that? Party Poker, which is a publicly traded company, however, may have method behind their madness. With Poker companies like Poker TV recently entering the stock market (PKTV), and both Pacific Poker and Ultimate Bet with plans to do the same, Party Poker may just be “pulling the ladder up” behind themselves. For all we know the experts over at Party Poker and their 5 year plan may show enormous profits expected due to their publicly traded stock. Furthermore, with fewer online poker sites traded publicly, Party Poker will surely hold a larger market share. A comment like this from Party Poker could deter other major sites from taking the leap into publicly traded stocks. With this being said, and the constant number of new online poker sites and promotions growing mainstream, the online poker boom is far from fading and may actually have more exponential growth in the years ahead of us.

[PPP]

They never said it was fading. They stated the obvious, that poker is growing nicely, but that the % level of increase will diminish. In other words, growing from 22 to 105 is a higher percentage than growing from 105 to 330, but it is certainly not anything to consider "bad".

Party statement was an incredibly positive one, that the markets didn't understand. Obviously poker can't grow 100% each year for eternity. Eventually you would literally run out of people.

[Kyle]

fading is defined as : To lose brightness, loudness, or brilliance gradually; diminish" which is exactly what they said

[PPP]

C'mon, no they didn't.

"the rate of growth is continuing to moderate"

That doesn't imply fading in any way. It's like I said. If you go from 10 to 70 one year, 70 to 210 the next year, and 210 to 500 the next, that is a rate of growth that is moderating, but it obviously isn't fading in any sense.

[Kyle]

I just re-watched the poker television show that I got this information from.

They were talking about Casava Ent. and Ultimate Bet gearing to go public "even after the Party Gaming CFO said the online poker craze was slowing down"


My whole post is geared at how online poker isnt dying, so in a way I don't know what we are arguing about. I am just trying to say that Party Gaming was only saying that comment in order to "pull the ladder up" after themselves.

[PPP]

Which is my point. They certainly said no such thing. They were saying what we can all see: very popular, growth continues... but obviously doubling a large number is harder than doubling a small number.

Poker is just another fad.

Of course, it's a fad that's been around since 1829 or something like that?

[dbirider]

Ask lee jones if online poker is dying. 5300 people put up $215 in last weeks pokerstars sunday tournament compared to 3400 two months ago. Now if next week just 80 people enter then it's time to throw in the towel.

[goldog]

I think Party wanted to both rein in expectations for thier own growth and possibly cool the market for other entries. But they ARE still talking about growth. That should be good.
B)

[CasinoMack]

I have a theory as more lower end (and some mid end) jobs get moved overseas people will turn to online poker, stock market, affiliateing, and possibly other forms of gambling to make extra money or a shot at a new career.

Plus Party might have tried to sandbag next quarters earnings to potentially surprise.