Mainstream media in the UK's financial sector are speculating that Cassava Enterprises, the company owning Pacific Poker and Casino on Net, is planning a $1 billion plus flotation on the London Stock Exchange later this week.
Pacific Poker is one of the most popular poker rooms according to PokerPulse, which lists the site in 4th position, ranking only behind PartyPoker, PokerStars and PokerRoom.com. Casino on Net, better known as 888.com, is without doubt the world's largest Internet casino with more than 20 million registered players. Casino on Net is run by former Ladbrokes executive John Anderson.
Earlier this week, the U.K. Sunday Express reported that Cassava Enterprises decided to speed up it's planned flotation in preparation for a large takeover in the poker sector. PokerStars, the second largest poker room, and home to both the 2003 and 2004 winner of the World Series of Poker, was mentioned as the target for Cassava's takeover plans.
Cassava Enterprises has declined to comment as of yet, but it's difficult to dismiss these rumors as mere speculations, with respected U.K. media like the Financial Times reporting on them.
2005 is hardly over yet, but it's already the year of the Poker IPO's. Only recently, PartyGaming successfully completed the biggest flotation on the London Stock Exchange since the dot com bubble a few years ago. PartyGaming's shares have only been up since, and it's four founders were added to Forbes' billionaires list last month, being worth a combined $8 billion. Partygaming's smaller cousin, Empire Poker, floated on London's Alternative Investment Market in June, and it's shares are up more than 36% since then.
More online gaming companies are expected to float this year. The most important one will be the flotation of Cassava Enterprises, but other companies have been named as well, for example PokerStars, JackpotJoy, UltimateBet Poker, PokerRoom.com and Trafalgar Gaming (32Red).
Some analysts are drawing comparisons with the dot com bubble from a few years ago, but a recent advisory from Deutsche Bank said: "Talk of a bubble is misplaced, given that many of these companies generate substantial profits, with European companies profiting from the gray area of US legislation."