As should not be surprising, the industry went into a frenzy after hearing this news. Companies began a frantic search for answers as to what this meant토토사이트 for their operations, while players from the United States made a wild hurry to withdraw their funds.
PartyPoker, the largest online poker site that receives토토사이트 more than 75% of its revenue from the United States, lost the most from this development. While it had a different significance for each poker site, it was clear that Party Poker stood to suffer the most.
The organization made an effort to consider all of the opportunities that were available to them. Combining forces with competing businesses in the industry was one choice that may have been made. They also investigated the possibility of buying a bank in a jurisdiction favorable to gambling and then handling the processing of transactions independently.
However, each of the proposals ran into a huge obstacle: PartyGaming had a fiduciary responsibility to its shareholders because PartyGaming was a publicly traded company. This meant that none of the ideas could be implemented.
After a lengthy discussion, the firm finally decided to make an announcement.
The group decided to leave the United States market, even though it would harm their revenue in the short term. This would have resulted in their American players being homeless.
This had a significant effect on the corporation from the point of view of both its valuation and its liquidity. The market responded appropriately, sending the company’s stock tumbling 60% overnight and even further in the following days, bringing PartyPoker to lows they had not seen since the company’s inception. The company cut off three-quarters of its incoming revenue overnight, and the market reacted accordingly.
The action that PartyGaming made caused widespread consternation throughout the industry. Other publicly traded gaming businesses soon followed, but others, like PokerStars, chose to stay in the United States, where they have seen significant revenue increases.
As a consequence, PartyGaming needed to expand into new markets and provide new goods to win back the faith of their shareholders and restart the process of growing their business.
Even before the enormous setback the company suffered in October 2006, PartyGaming had experienced several important shifts in its operations. To begin, Dikshit and Bhargava had both resigned as members of the board of directors of the company; they were eager to get started on other endeavors.
Midway through 2006, the company unveiled a new piece of software that provided access to games other than poker. This allowed players to access various games with the ease of one centralized account rather than having to create separate accounts for each game.
The corporation also appointed a new chief executive officer. Jim Ryan, who had most recently served as the CEO of Excapsa (Ultimate Bet) and the Chief Financial Officer of casino software company CryptoLogic, has been brought on board.
His mission was crystal clear: develop a plan to protect the PartyGaming brand while simultaneously identifying new opportunities for the company to expand its operations.
The difficulty with this approach was that there were already an excessive number of gaming companies operating in the European market. Gambling was ingrained in the culture of Europe. Therefore players and operators benefited greatly from the region’s more favorable legal environment.