online poker uigea
If you follow poker news, you must have noticed recent headlines such as “Harrah’s going private” and “PartyGaming looking for a new owner.” Gaming in general – and online poker in particular – is a multi-billion dollar industry that has found ways to grow despite setbacks such as the UIGEA which cut off almost all of the US market. Here are a few figures to give you perspective: according to Barrons, online poker rooms rake in around $2 billion per year, and the New York Times predicted revenues of as much as $6 billion by 2009. Compare this to the combined annual revenue of all the casinos on the Strip in Las Vegas, a “mere” $5 billion, and you’ll see the kind of potential that investors see.
We are no experts in trading, but we have put together an ABC of trading including tips on how to interpret the info available on gambling stock on the Internet, what to take into account when investing and a collection of highlights of the main online gambling companies and their stock. If you decide to go into trading, please make sure you do your homework and consult with a professional whenever possible. Kids, don’t try this at home!
For those – like this author – who do not know the first thing about trading, here are some basics. We interviewed an expert trader to get the lowdown, but since he trades mainly in the New York market most of our info will be oriented in that direction.
Stock exchanges are brick-and-mortar or online markets where companies and traders buy and sell their stock. Some stock exchanges are still operated by experts on the trade floor, the New York Stock Exchange (NYSE) being a good example of this; others, like the NASDAQ, are entirely virtual, meaning all exchanges take place electronically. Both of these exchanges are “listed,” meaning that they only trade with pre-approved stocks already in their list.
Let’s get down to brass tacks. What is this “trading” thing and how does it work? Again, we are no experts, but this is what we found out: trading works based on the auction principle, i.e. something will sell for the highest amount someone will pay for it, and someone will buy for as little as they can. In the trading floor (or the virtual exchange) potential buyers offer as much as they are willing to pay and potential sellers ask for the price they want to sell at. If there is a match, a sale will take place. If someone is very eager to buy or sell, they will do so “at market”, meaning they will accept any price.
In the US anyone can buy stock as an investment, but you cannot just walk up to the stock exchange and order six of this and half a dozen of the other – you must place your order through a professional broker. Actually, not even a broker can order six of anything: in most exchanges you must buy stock in increments of at least 100, which is not steep if you’re interested in purchasing some World Poker Tour stock (WPTE) at its current price of $1.96, but it can be a bit more forbidding if you’re thinking of Cryptologic stock (CRYP), which is selling for $19 at the time of writing. Then there is more established stock, such as Party Gaming’s (PRTY.L), which is available in the London Stock exchange for 29.95 British pounds (about $60); and you’ll have to reach deep in your pockets if you want to buy some of Harrah’s stock (HET), which is priced at almost $89 per unit at the time of writing.
Our next installment will show you how to make sense of the basic info about gaming stock that you can find on the papers or online.
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Article Source: ArticlesBase.com – How to Make Money From Poker Without Playing a Hand I. Trading Basics
News Clip on UIGEA and Online Poker (04/02/08)