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

[whangarei]

Party line

"In the very near term, PokerStars can be an issue," said Garber. "But the playing field is going to become much more level. Most of the banks and processors are set to leave the industry ... probably within the next 30 to 60 days."

He said that as banks stop doing business with online gambling companies that take U.S.-business, the current high level of competition would fade.

"You're going to see a dramatic impact on sites like PokerStars and a positive impact for us," he said.

[FatalError]

i'm honestly considering a large purchase of party stock, how could things realistically get worse for them?

[BluffTHIS!]

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.

[RiverMustelid]

Buying party stock? That is a very risky investment indeed. The valuation is dependent on continuation of rest of world players. I've noticed a lot have already started to switch, and I'm in transition too.


Because of terrible customer service loyalty is very low. Sites rely on a network affect, if numbers drop they can spiral down.

I'm considering shorting party.

[Our House]

[ QUOTE ]
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.

[/ QUOTE ]
Legally, yes. But AFAIK, Neteller only gets paid for deposits and makes $0.00 from withdrawals.

If they were to leave the market, it's highly doubtful that they would continue to service US customers on a withdrawal-only basis.

[BluffTHIS!]

The sites will pay the fees. Or we will.

[Our House]

There are currently no fees associated. Neteller will just have extra "paperwork" to do for an entire group of players who provide no potential income for them.

If you're saying that they will offer this withdrawal service with a newly associated fee, then I agree that it's a possibility.

[BluffTHIS!]

That's what I meant. If Neteller sees a market for cashouts only, then obviously they will have to charge for them.

[JPFisher55]

They could go bankrupt.

[Guthrie]

[ QUOTE ]
[ QUOTE ]
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.

[/ QUOTE ]
Legally, yes. But AFAIK, Neteller only gets paid for deposits and makes $0.00 from withdrawals.

If they were to leave the market, it's highly doubtful that they would continue to service US customers on a withdrawal-only basis.

[/ QUOTE ]
I would happily pay a reasonable fee to withdraw from a reliable company rather than trusting large sums to a shady operator.