Feeds

Poker site cuts IPO price

I'll see you at £1.27 a share

  • alert
  • submit to reddit

Internet Security Threat Report 2014

Online poker site PartyGaming is cutting the price of its Initial Public Offering because of concerns that its business may be stymied by US regulators.

The majority of PartyGaming's £600m annual turnover comes from US gamblers but the law there is unclear. European investors believe the company is priced too high considering this uncertainty.

Online gambling on sports is illegal in most states and some fear the puritans in Congress might try to ban all online gambling. The US makes up the lion's share of the market but this goes through companies based outwith the US.

The issue hit the headlines again in April when the World Trade Organisation ruled against the US's attempts to stop punters using offshore gambling sites.

Dresdner Kleinwort Wasserstein, which leads the float, talked to potential investors before lowering the price range to between £4.4bn and £5.1bn, giving a price between 111 and 127 pence per share, according to the FT. DKW originally suggested a valuation of £5.08bn.

Some investors were also concerned about the gambling firm's ambitious growth plans and its ability to maintain such high margins.

Worries about changes to US regulations means US banks are avoiding the flotation.®

Related stories

Online poker firm set to float
China hits net gambling hard
WTO rules in online gambling dispute

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.