2009 Nov 19

WPT and PartyPoker begin fight for poker supremacy

Mike Sexton
'Hopefully when online gaming becomes legalized in the United States, PartyPoker can come in and retain its status as the number one poker site in the world.'
By: Martin Derbyshire

With its acquisition of the World Poker Tour now complete, PartyPoker has set its sights on becoming the number one name in poker once again.

"That's our stated aim," PartyGaming's chief marketing officer Chris Welch told PokerListings. "And until that time we will leverage both the World Poker Tour and PartyPoker as best we can to take that challenge to our competitors."

Before the Unlawful Internet Gambling Enforcement Act (UIGEA) was signed into U.S. law in October 2006 and PartyPoker effectively pulled out of the U.S. market, it was the number one site in poker.

Since that time, PokerStars has emerged as the industry leader with more than 28 million players worldwide.

A major catalyst for PokerStars' growth has been the emergence of the European Poker Tour. While the WPT has always been credited with helping spur on poker's boom, it has since been surpassed by the PokerStars EPT, which boasted a total prize pool in excess of $55 million over 11 events last season, making it the largest poker tour in the world.

However, Welch says PartyGaming subsidiary Peerless Media Ltd's $12.3 million purchase of the WPT, approved by shareholders earlier this month, now has the organization primed to compete in Europe and across the globe.

"We think there is certainly room for two big tours in Europe," said Welch. "And the World Poker Tour, we believe, is a global brand while the European Poker Tour exists only in Europe."

Particularly in Italy and France, the WPT plans on embarking upon an aggressive growth strategy to begin competing with the EPT.

"We're looking forward to more global expansion, more International expansion," added newly appointed WPT president Adam Pliska.

Welch said part of that expansion will include offering more online satellites into WPT events worldwide.

"It's a great opportunity to offer our European players more tournaments and land based events and of course we are going to run satellites on PartyPoker," Welch said. "But we are also going to encourage other online sites to do the same."

While sites other than PokerStars once ran satellites for EPT events, many stopped after PokerStars forced its competitors to use the site's branding.

Welch says the WPT and PartyPoker will be taking a different approach.

"PokerStars have gone down the route of it being the PokerStars EPT and you've got to have that on your site to run satellites or freerolls," he explained. "That's not our strategy. Our strategy initially will be that it's the World Poker Tour and you can come and qualify from any online site or direct buy in.

"What they are trying to do is leverage their brand. They have the biggest tour in Europe and they are trying to get other people to mention their brand name. We have an opportunity here to grow the World Poker Tour by offering other online sites a chance to get in there without necessarily mentioning PartyPoker and that's what we are going to do."

But the battle for online poker supremacy will not just be fought on European soil.

In April of this year, PartyGaming entered into a $105 million settlement with the U.S. Attorney's Office to avoid prosecution for providing Internet gambling services to U.S. customers prior to the enactment of the UIGEA.

Under the terms of the agreement, PartyGaming agreed to stay out of the U.S. Internet gambling market under current legislation and is hoping, should the legislation change, it would be in a prime position to move back in.

Welch said the purchase of the WPT is yet another way PartyGaming is paving its road back into the United States.

"Should the United States open up, it's going to put us in a preeminent position, way ahead of the competition," he said. "We've taken the long view while some of the other players have taken the short view, and should the United States open up, we are going back to being number one again."

However, until U.S. Lawmakers get on board, Welch said the front lines of this fight will remain on the other side of the Atlantic.

"This provides us with a massive platform to bring PartyPoker back into the hands of millions of Americans," he said. "But in Europe, we can do that from day one."

The public face of both brands, 2009 Poker Hall of Fame inductee Mike Sexton, believes with PartyPoker and the WPT coming together, the sky is the limit.

"I think it can be a huge entity and a worldwide brand," he said. "Hopefully when online gaming becomes legalized in the United States, PartyPoker can come in and retain its status as the number one poker site in the world."

Comments

6
  1. LEE

    2009-11-20

    Party Gaming screwed US Players so there is now way in hell they can get back to #1 ONLINE POKERSITE IN THE USA

  2. Tom

    2009-11-20

    Perhaps you should be rooting for the re-entry of Party Gaming into the US market, meaning this intrusive government interference the past 3 years would be abolished! This would be good for all poker players who enjoy playing online. All of us should have the right to choose and play on the online site of our choice. Competition helps protect consumers. Regulation in the online poker industry is the answer....not prohibition! Next the government might close Poker Stars or Full Tilt down, if they begin the enforcement stage. Poker is as American as apple pie, and the entire world operates on the Internet today. Poker deserves to be included. Party Poker was our pioneer that led the way, and due to them going public on the London Stock Exchange, they felt compelled to pull out of the US. This is what caused Poker Stars and Full Tilt to flourish. I want to be able to play on any and all of them. Our focus needs to be on the our government and politicians coming to their senses! Freedom of choice is the real issue!

  3. michael

    2009-11-20

    tom,

    i couldn't agree w/ u more...Full tilt and stars only flourished when party left the U.S. due to their obligations to stockholders...I have to think that regulation is around the corner...Look @ what pacific is doing with their B2B arm dragonfish and its creation of the WSOP online poker room along w/ Caesars online. Whats the coincidence w/ all these companies? Both party and pacific are trying to solidify europe or almost use it as a distraction and to keep busy so as to leverage their online gaming and be able to transition to the u.s. hopefully once regulation occurs.

    Michael

  4. Mike

    2009-11-21

    I'm not sure why anyone would push for one poker company to be dominant. The ideal situation for online gaming from the gamers perspective would be to have several strong companies who compete with each other on a level playing field in order to provide the best play experience possible for the player. Competition drives innovation.

    I don't see how having one dominant gaming company will allow for the largest number of options for players. Gamers need variety.

    I find it rather hypocritical that a company would try to legalize gambling for the sake of freedom of choice and then try to establish a monopoly on the entire industry at the same time which effectively reduces choice over the long term. If they were really about freedom of choice they would not wish for their competitions demise but instead hope for good competition in order to drive innovation so that players would have the maximum amount of choice that they could exercise freely.

    Any sort of regulation should keep this in mind as well. Monopolies were bad for software, bad for auto-manufacturers so why should we assume that a company with a monopoly would be good for online gaming?

  5. Lee

    2009-11-21

    Party Gaming blew it chance to retain the #1 status lost millions and now thinks players in the USA will welcome them back-Hell no PokerStars and FullTiltPoker will destroy them.

  6. Tom

    2009-11-23

    Lee,

    Don't spend your energy ranting about PokerStars and FullTilt destroying PartyGaming. Worry more about our government enforcing the UIGEA legislation on December 1st, thus grinding down our two biggest online poker sites. Worry about the enforcement being delayed, only later to sneak in the back door.

    Don't be the guy trying to stand up in a storm in the ocean in his rowboat, not focused on the fact a tidal wave is fast approaching. Try and keep focused on the big picture.

    Remember 3 years ago in 2006 how the UIGEA got passed in the middle of the night thru politics, added on to the back-end of a port authority bill, that couldn't pass on its own merits?

    Try and focus on the big picture. Competition is good..........the lack of it is dangerous!

    Most of us who enjoy playing poker online just want our hypocritical government to lift the restraints off of the entire industry. Regulation is fine...........prohibition is not! The whole world operates online today, and poker certainly needs to be included.

    Don't spend your energy like a cheerleader hoping one site destroys another. This only gives the appearance you have a personal agenda or an affiliation with someone.

    Lets root for all of them to flourish, thus giving all of us more good choices.

    Remember: Stay focused and look at the big picture. The truth is........ the online site who provides the best product with the best service will generally surface to the top.







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