Online Casinos Group Sees Drop In Share Price

Initially it was thought that the stock of the online casinos could hit the market with a total value of anywhere from $1.36 to $1.59 billion. This number was recently revised to reflect the drop in Party Gaming stock and is more realistically estimated to be worth anywhere from $989 million to $1.29 billion when it hits the stock exchange.

Cassava Enterprises runs several large sites such as 888, Pacific Poker and Reef Club to name a few. Run from Gibraltar, the operator is estimating possible deals to hit on September 29 of this year when they float the London Stock Exchange. There has even been some speculation that the float for 888 Holdings, the parent corporation of the operation itself may in fact hold off on the stock float due to its poor performance recently.

Financial analysts hold that the online gambling industry is still to volatile and that it is unwise to invest in it. All this is due mostly to the ongoing debate on their legal status in United States as well as recent attention the subject has been getting at the WTO. The Americans have taken a staunch stance against online casinos operating on US soil. Technically it is even considered illegal to gamble within America itself.

The operator, 888 Holdings, hopes to make $321 million later in September when it floats the stock. Ultimately they plan to sell 25% of their stock. The value of Party Gaming´s stocks has taken a serious hit, now valued at only one third of what was originally estimated and this has sent a shock wave through the industry.