Poker Sites
Regulation
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 In
October 2004, Sportingbet PLC brought online poker into the mainstream when it purchased Paradise Poker for $300 million.
Sportingbet is traded on the London Stock Exchange's Alternative Investment Market. Prior to purchasing Paradise, Sportingbet
was trading at about 100p. By mid-2006 it was trading around 400p, with a market cap in excess of $3 billion. After passage of the
Safe Port Act, Sportingbet's
price dropped to about 35p. Sportingbet no longer allows US players.
eGaming Review Magazine has called Sportingbet "the most powerful firm in global egaming" for its diversified
web properties, geographical reach and overall corporate philosophy.
Finance Director Andrew McIver takes over as chief executive from Nigel Payne, who has been the face of the online gambling
industry more than any other. Payne will remain as an executive director and will be in charge of new business and regulatory
issues. Prior to the Safe Port Act, McIver told eGaming Review: "Five years ago, we were making £14m profit and
had a couple of hundred staff. Nowadays, we are making north of £100m and have 1000 people working for us."
Payne testified in North Dakota in support of a bill that passed the House but failed in the Senate to legalize licensing
online poker operators. Payne also appeared on 60 Minutes, proposing that the United States follow the United
Kingdom's lead in regulating online gambling.
Besides Paradise, Sportingbet operates several dozen sportsbook brands as well as bingo and casino games. Cross-marketing
also increased, with 17% of sports bettors playing poker and 14% of poker players placing a casino or sports bet.
In February 2007, Sportingbet, which operated two poker platforms, decided to close the Paradise Poker one because
after the passage of the safe Port Act it had shrunk to the size of its Sportingbet Poker platform. More details in the
Paradise Poker article.
Previously the closest thing to a blue chip stock among online gaming companies, McIver reinforced the company's
interest in maintaining that position by stating: "Word of mouth is important and when people want to bet online
they will go to one of our sites just as they think of eBay if they want to sell something."
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