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PartyGaming Says 'Party's Over' to Empire Online; Empire Stocks Drop 30%
In a radical step that stands to shake up the online poker market as a whole, PartyGaming has effectively separated itself from Empire Online, the company's biggest affiliate partner. PartyGaming announced that in the first half of 2006, it will launch a new expanded platform, with new features added to its poker games, and featuring an expanded gaming portfolio with other non-poker games. The new platform, however, is one party that Empire Online and the other “skins" won't be invited to. PartyGaming announced that “Party Poker players will now play on their own private tables." The new platform will be available to users playing directly on any of PartyGaming's sites, allowing them to access all games via a single account.
Nonetheless, online players accessing PartyGaming's poker technology via any of the white label sites, including Empire Poker, operated by Empire Online, will still be able to access the currently-existing platform. Despite this, and the fact that PartyGaming is offering skins something of a consolation prize by enhancing the current system, in pulling its players from the existing system's player pool, PartyGaming will effectively slash the liquidity enjoyed by Empire Online and the other skins. With a significantly diluted player base, it is likely that Empire Online will have a tougher time attracting and retaining players.
Although Empire Online was optimistic regarding the move, citing the potential benefits of PartyGaming's enhancements to the current system, it seems that investors disagree, with Empire Online Stocks falling over 30 percent as of 14:27 GMT.
That being said, Empire's third quarter results, also published today, boasted impressive performance, including revenue growth of a whopping 71 percent. Thankfully for Empire Online, the company has begun to expand its reach and diversify its offerings, particularly with the acquisition of Noble Poker and Club Dice Casino. With these new assets, Empire Online has bought itself a way to thrive independently of its relationship with PartyGaming. Empire may yet prove that life goes on, even after the party's over.
Source: Poker777 Staff
Monday, 10 October 2005
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