Forbes.com profiles poker giant PokerStars

[The Buzz]

Forbes.com has run a story entitled "PokerStars: Online Gambling's Quiet Giant." The story delves into the normal post-UIGEA analysis like most online gambling articles in the mainstream media.

This article also discusses the crucial decision by PartyGaming to leave the U.S. market, while PokerStars decided to stay.

From Forbes:

PokerStars quickly became the biggest firm in the world’s most important market and now has estimated annual revenue of $1.4 billion and some $500 million in profits. This financial success stems from the rake, or fee, that PokerStars is able to charge players in return for hosting poker games or tournaments.

Much to the frustration of PartyGaming, PokerStars has used the cash generated from the U.S. market to expand globally, where online poker is a $4.8 billion annual business, according to H2 Gambling Capital. PokerStars, however, claims that its industry leadership is not related to the U.S. market, but rooted in its international operations, particularly in Europe.

[Anthony]

Do we really know what percentage of players at pokerstars are U.S. based?

Pokerstars shot to #1 after PartyPoker left the U.S. market not the European market.

I suspect there is a sizable U.S. player presence, "not related to the U.S. market", yea right.

[gamingaffsguide]

Their room is in USD and I think party dropped by 80% of it's player base so I'd guess that pokerstars is around 75% US players. They have worked hard in the past few years to expand around the globe.

I predict they earn well over $1B in profits per year.

[PokerNations]

Their room is in USD and I think party dropped by 80% of it's player base so I'd guess that pokerstars is around 75% US players. They have worked hard in the past few years to expand around the globe.

I predict they earn well over $1B in profits per year.

Stars is only now introducing the NAPT series (north american poker tour) but they've been building the EPT, APPT, LAPT, etc. for awhile now.

The problem that Party encountered is that they took their company public and then the UIGEA hit and to avoid problems as a publicly traded company they had to pull out of the US market.

Because Stars and Full Tilt aren't on the stock market they were able to remain in the mix, that's my understanding.

[dhayman]

Their room is in USD and I think party dropped by 80% of it's player base so I'd guess that pokerstars is around 75% US players. They have worked hard in the past few years to expand around the globe.

I predict they earn well over $1B in profits per year.

This is amazing since their affiliate program is one of the least supported. They've done a lot of direct marketing, and this strategy, has obviously paid off for them.