Party CEO predicts banks/ processors to leave US IG w/i 60 days

[Sniper]

They also claimed that their user numbers were still #1 during peak european hours.

The conf call is available on replay for anyone interested.

[Phil153]

[ QUOTE ]
[ QUOTE ]
They pulled the number of players data immediately after the bill was signed.

This was addressed in the conference call, and Party's explanation was that they were comfortable presenting user numbers when the playing field was level, but now that its not, they don't want to for competitive reasons.

[/ QUOTE ]

lol that's so pathetic

[/ QUOTE ]

That's not the worst of it. Party has blocked the name of any other site from chat. Words like "star" and "ultimate" come out as XXXX. If you say "ace of clubs" it comes out like this:

ace of clXXs (i.e. ub is the intials for ultimate bet)

Pretty funny.

Back on topic, Party's European numbers are pretty impressive. Once their marketing shifts there I think we'll see a steady increase in numbers. It's a huge growth market.

[Sniper]

[ QUOTE ]
They have $132 million to cover $192 million in player liability and 90% of their players are going to cash out.

Their $500 million credit facility was cancelled,

Things can get worse quickly for the shareholders. (I am NOT saying that the Company is going to fold, not by a longshot ... However, I think distressed debt of Party, if available publicly at a steep discount, might be way better to make a bet here than investing in common equity.)

[/ QUOTE ]

Milton, that analysis was on old data... after accounting for all player liabilities and the minimal drawdown they had on their credit facility... Party still has positive cash of $83 million...

The $500 million credit facility was not cancelled, the banks agreed to a 60 day period to reevaluate and review Party's new financial position.

[Sniper]

One other note on Party CEO's comments...

It is important to evaluate his comments in context. Garber came to Party from FireOne (ie Firepay), meaning he knows the payment processing industry. He has also had discussions with all of Party's payment processors, which have confirmed to him that most will be pulling out of the US in the near future.

His comments should not to be dismissed out of hand, as posturing.

[excession]

I find it very dubious that they don't keep player money in separate trust accounts to be honest - I never keep more than a few 100 $ in Party for that reason whilst I'm happy to keep $1000's in Stars

[chezlaw]

[ QUOTE ]
Back on topic, Party's European numbers are pretty impressive. Once their marketing shifts there I think we'll see a steady increase in numbers. It's a huge growth market.

[/ QUOTE ]
I think they may struggle. They've alienated so many of the high volume and savvy players that without their huge fish base they desperately need to generate new european players, but these players are far more likely to play at huge dependable 'won't steal your money or go bust' organisations like ladbrokes, Victor Chandler etc

There's a good reason for keeping your regular and best customers happy during the good times. Now they can enjoy the trial of surviving the bad times without us.

They're not that competent either, they haven't even bothered to contact the old european regulars to see why we don't play there any more.

chez

[MrHenry]

[ QUOTE ]
I think they may struggle. They've alienated so many of the high volume and savvy players that without their huge fish base they desperately need to generate new european players, but these players are far more likely to play at huge dependable 'won't steal your money or go bust' organisations like ladbrokes, Victor Chandler etc

[/ QUOTE ]

I was going to move my bankroll to Ladbrokes when the Americans were banned because the only reason I ever played Party was the fish and I assumed they would be no more. Also as you say there is the question of trust as well.

Maybe I'm just running well but my winnings have never been better since the bill was signed. It appears that not only are there just as many European, Australian and Candian fish but we have lost many of the good players who kept my win rate down.

OK deep down I know it is just variance, we are talking abour ~2000 hands, but I've decided to stick with Party for the time being.

[xerxesthegod]

I used to think like you. But now I'm moving to Fulltilt.

[fish2plus2]

[ QUOTE ]
While what he says may or may not come true, it is clear that he is using this issue as propaganda to prop up his stock and tell the investment community that it's not so bad that party is no longer #1. If stars/FT and others find alternate depositing methods assuming neteller isn't there for that, then neteller can still legally function for fast withdrawals as it does now as the law doesn't prevent them from providing that function. So as long as players don't mind a short delay in funding their accounts and can still get faster withdrawals, then stars/FT et. al. will continue to grow and prosper at party's expense assuming they don't flip flop on americans, which as private companies they aren't as likely to. And even if stars/FT should in the future not be willing to be in the US market, then sports sites like Bodog probably will be so willing assuming as seems likely, that the funding prohibitions of the IUGE won't be enough to stop determined bettors and players.

The bottom line is that party is pissed that private poker sites aren't throwing their lot in with them and forgoing this opportunity to grow at their expense. Tough [censored] for party.

[/ QUOTE ]

If Neteller stops allowing you to deposit into IG, than they will likely stop allowing you to withdraw to them also, ala firepay.

[Megenoita]

So what do you recommend? How should we treat our money right now, and in the near future?