Shares of UK companies that own online gambling sites have soared
this year on speculation of mergers and acquisitions and the profit
potential of online poker, reports Dresdner Bank analyst Andrew Lee
this week.
Online poker businesses were "hugely cash-generative in
an explosive growth market", said Lee. "The
market is finally rerating them to reflect their organic and acquisitive
growth prospects."
The internet poker market is worth $1.5 billion (R9.3 billion), according
to Sportingbet, which in October bought Paradise Poker, a major provider
of poker on the Web, for $297.5 million. Since then, the stock has
surged 88 percent.
And shares of Gaming Corporation, the owner of Playcasino.co.uk, have
more than doubled.
Companies that operate online poker sites are benefiting from increased
traffic and the average rake, analysts claim. There is "...incredibly
good growth potential coming from poker", says another
report from analyst Paul Leyland.
About 4 percent of British adults who have access to the internet
have gambled online in the past two years, according to figures published
by the Gaming Board for Great Britain, which regulates UK land casinos.