2 Oct 2005 headline called casinos stock float tepid success

It was originally expected earlier this year that the online casinos stock floatation for 888 would be just another in an ongoing string of successful IPOs for the online gambling industry which would help to set that industry on a course for future super-powered growth. Then, the Party Gaming corporation let loose lips fly with some bad news a few weeks ago that not only sent casinos stocks tumbling - it wiped out nearly all the gains that that online casinos company had made on the London Stock Exchange and provided an unforgettable lesson to formerly enthusiastic would-be online gambling stock market proponents.

The 888 IPO was initially priced at 175 pence a share, out of a range of 162 pence to 212 pence. However, just a few hours into trading the stock was at 172 pence a share, a nearly 2 percent drop which still garnered the company a value of around 580 million British pounds. This is far from a failure for the online casinos corporation, but the IPO did not meet expectations and it is because of this that observers say future online casinos IPOs may be put off until it is deemed not just safe, but truly profitable to offer IPOs again on the London Stock Exchange.

Party Gaming's IPO a few months ago seemed to indicate that the winds were changing for the online casinos industry, but then a few weeks ago Party Gaming released news that said new gamblers at their online casinos and poker sites were not wagering as much as returning or regular members, which send stocks of the company plummeting, resulting in a loss of over $1 billion (U.S.) and sending advisers scrambling to online gambling executives to urge caution in the coming weeks. The 888 stock float had been under consideration for some time following the initial success of Party Gaming, but it can be expected that future stock IPOs for online casinos will stay on the back burner until, as stated before, the market is deemed ready again.