SportingBet CEO Says Online Poker Popularity Is Just "Hype"
According to the UK newspaper, The Evening Standard, McIver was quoted this week as saying, "There had been a lot of hype in Internet poker and that has now come off a bit."
The implementation of US legislation, Unlawful Internet Gambling Enforcement Act (UIGEA) in 2006, forced SportingBet and it's subsidiary, Paradise Poker, out of the US market. The result led to a 90% decrease in share value and a 240-million GBP (491.4-million USD) write off in business value. The most recent 2rd-quarter reports depicted a 50% drop in poker rake, down to 4.6-million.
Accompanying these results was the statement, "That is as a result of significantly reduced liquidity following the loss of US resident players."
Earlier this year, SportingBet was forced to move their Paradise Poker platform onto the SportingBet Poker platform, under the management of Boss Media, in an effort to reduce expenditures.
The company divulged it's plans to focus more on its European sports betting operation. SportingBet's online poker and casino gaming combined now make up only 40% of the company's total revenue, while another 40% is coming from European football bets.
McIver states that they must improve efforts to recruit and retain customers by implementing web site improvements and retail offerings. "We will carry on focusing on sports, but we need to take whatever products we have got and make a better effort with it."