European Gaming Sites Flourish In Aftermath Of Black Friday
Wednesday, 20. April 2011

While Black Friday proved disastrous for PokerStars, Full Tilt Poker, Ultimate Bet and Absolute Poker, European online gaming companies appear to be flourishing in the aftermath (for more information regarding Black Friday, see Disaster Strikes PokerStars, Full Tilt Poker, Ultimate Bet, Absolute Poker And The Entire Online Poker Community. Stock prices of European gaming outlets have begun to soar: 888 Holdings Plc gained 19%, Playtech Ltd rose 7.5%, Sportingbet Plc rose 4.7% and Ditital Entertainment Plc rose an incredible 30%.

News of Friday’s events proved devastating for the four major sites indicted by the U.S. Department of Justice, as well as for their U.S. players, particularly those with real money accounts. The futures of the four sites are unknown, with the loss of all of their US players, indictments against their executives and $3 billion in civil suits leveled against them by the U.S. federal government. In light of the indictments, European companies that remained outside of the US market now have shot at the top spots and their rising stock values reflect this opportunity. Undoubtedly the largest beneficiary of Black Friday is Digital Entertainment Plc. The 30% jump in their stock value is the largest increase since PartyGaming’s IPO back in 2005.

The problems for PokerStars, Full Tilt Poker, Ultimate Bet and Absolute Poker are not quite over. The fact of the matter is that many of the European countries that have provided licenses for the companies might now reconsider in light of the charges and the charges will certainly be an obstacle towards reaching any agreements in any new markets.

The 19% increase in stock value couldn’t have come at a better time for 888. It goes a long way to offset any investor concerns regarding last week’s announcement that Gigi Levy, the CEO, will be resigning and the collapse in their proposed merger with Ladbrokes.

Things are going very well for William Hill as well. William Hill is purchasing American Wagering Inc. for close to $18 million as well as Club Cal Eva’s Satellite Race and Sportsbook Division for $21 million. American Wagering Inc. owns Leroy’s sportsbook and betting kiosks. At the moment, William Hill commands a 25% share of the sports wagering market in the UK.

Join Bodog Poker, a US friendly poker room with incredible bonuses and promotions.