Gambling corporation Entain allegedly contemplating the sale of PartyPoker.
Big-time gaming corporation Entain supposedly aiming to let go of prominent online poker site PartyPoker.According to a piece published by Sky News [English link provided], it's rumored that gaming titan Entain is planning to offload the widely-used poker platform, PartyPoker, without delay. For this intention, the company is collaborating with specialist gaming and sports consulting firm, Oakvale Capital.
Allegedly, the sale of PartyPoker could yield up to 150 million GBP (roughly 175 million euros). In 2005, former PartyPoker parent company, PartyGaming, went public, and the platform was valued at more than 5 billion GBP (approx. 5.8 billion euros) at the time.
Reportedly, PartyPoker has witnessed a substantial shrinkage in clientele in recent years. Given its peripheral importance to Entain's core business, it's being marketed for sale.
What's PartyPoker?
PartyPoker is an online poker platform. It was established in 2001 and swiftly claimed the title of the largest online poker site in the world. By 2008, the annual visitor count for PartyPoker's website had surpassed 3.6 million. Since then, the platform gained prominence through partnerships with renowned poker pros and numerous events.
PartyPoker became part of Entain in 2016, when the gaming giant purchased the platform for 1.1 billion GBP (roundabout 1.29 billion euros). Available in 14 languages, it also features localized platforms in Italy and France.
Present in numerous countries globally, including various European and South American nations, PartyPoker is also accessible in the UK, Canada, and some US states. However, it largely withdrew from the American market in 2006.
PartyPoker's primary competition is the platform PokerStars, both excelling in the poker industry for years and significantly boosting poker's popularity.
Although PartyPoker has faced client losses, PokerStars has enjoyed international growth and now leads the market in the online poker segment. A statistic from December 2023 [English link provided] suggests that PokerStars held a 37.66% market share in Italy.
Financially strapped gaming conglomerate
There are speculations that Entain's impending sale of PartyPoker stems from its financial woes. Quite recently, the company disclosed its 2023 financial results, revealing a one-billion-dollar loss for the gaming titan*:
The year 2023 brought numerous challenges to our industry as well as Entain-specific trials. I am deeply impressed by how our global employees rose to the occasion and successfully navigated the company through a year fraught with tests and obstacles.– Stella David, Interim CEO, Entain, iGaming Business*
The enormous loss can be attributed to extraordinary expenses. In November 2023, Entain was slapped with a 585 million GBP (approximately 674 million euros) fine by the UK financial regulatory body. Besides, numerous inherited issues contributed to the one-billion-dollar deficit.
This colossal deficit may potentially be offset by the sale of PartyPoker. Yet, it's yet uncertain if a buyer for the poker platform has been identified.
Despite the potential sale of PartyPoker, the online poker site continues to be a source of news. With its recent struggles in retaining clients, the news of its possible sale has sparked interest among industry insiders and poker enthusiasts alike.
In light of Entain's financial challenges, the sale of PartyPoker could be a strategic move to mitigate losses and bolster the company's financial position.
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