The online poker business just isn’t what it used to be. That’s the message Entain seems to be sending to the world as it puts its once-thriving online poker business, PartyPoker for sale. It’s a sale that will almost certainly result in Entain writing off a large portion of the $6 billion (USD) the company valued PartyPoker at when it went public in 2005.
Entain has secured the services of Oakvale Capital to help identify potential buyers and to move the deal forward. Oakvale and Entain are likely going to find that the market for online poker operations is definitely a buyer’s market at this point and time. Online poker has long passed its peak popularity and only accounts for a very small portion of the total gaming revenue in the few US markets where it’s even been regulated.
The story of PartyPoker itself speaks volumes about the rise and fall of online poker. According to a recent report from SkyNews, PartyPoker was once worth as much as $12 billion (USD). That was during the peak of the Texas Hold ‘Em fad and before the US Government cracked down on the grey market online gambling with the passage of the UIGEA in October 2006.
So what’s this golden goose going market for in 2024? Entain officials are expecting to get somewhere around $190 million for PartyPoker when all is said and done. Given the amount that PartyPoker has likely generated the company over the years, especially during the boom times, the fire sale price isn’t quite as bad as it sounds.
That said, SBC Americas is reporting that Entain may also be looking to sell other assets after an extended acquisitions period over the past couple of years.