PARTYGAMING

TO THOSE THINKING OF INVESTING…….

There are a number of risk factors which you should take account of and which are not really debated on this BB.

Firstly, as with all on-line gambling there is a dependence on the effectiveness of the Random Number Generator (RNG) employed. I and many others believe that the RNG used at PP is fixed to increase their rake, i.e. it generates ’nice’ looking hands and flops to encourage more people to play, hence to raise the rake. The instigator of this thread, Aerotus, has publicly said in a different forum, that he also believes this but he refuses to discuss it on here. Be aware that some posters on here have no ethics and will be happy to encourage you to put your money into these shares so that they can recover their loses!

So if I, Aerotus and many others are right and the RNG is fixed, what are the implications? Put simply, if this is proven then the shares in PartyGaming will be suspended immediately and you would not be able to sell them for love nor money, i.e. they would be worth zilch until the whole mess was sorted out.

IF there is found to be substance to the claim that they were cheating, or even that their software was fatally flawed never mind cheating, then it is almost certain that a class action in the states would be instigated. This would differ from other class actions in that every single punter who ever gave money and lost could be traced easily and therefore the lawyers would have a field day in signing them up. Once the lawyers fees and punters were compensated it is almost definite that there would be nothing left for shareholders.

Secondly, there is increasing evidence of a widespread use of bots – (automated software that plays the game for you taking account of more information than it is possible for a human to process). The result of this is that normal players are losing hand-over-fist. An article in the Mail on Sunday stated:

"One expert in this powerful new software, 'Chopper', tells me, 'It's amazing to think of how much we gamble on online poker sites - mainly because there is no such thing as a fair game of online poker. It just doesn't exist. The game is completely corrupt; it has zero integrity. Online players are secretly using every means at their disposal to fleece you --and at the forefront of their campaign is the use of poker robots. When all this becomes public knowledge, the amateurs will leave and the game will die.' "

As pointed out above – amateurs will inevitably leave and the game will die and the Company will cease to trade profitably. Another scenario, although less likely, is that PartyGaming will be exposed to legal threat from punters on the basis of a lack of due diligence in taking reasonable care to protect their interests. In short, bots spell the end for this industry although it will not happen overnight.

Thirdly, there is the continuing risk of legislative and tax regulation in the states which could severely damage the industry. This issue has been widely discussed and therefore I will not go into it in detail.

Overall, this is a share which might rise for a while, might even last a year or two, but also one which could be suspended within twelve hours with the result that investors lose everything. Obviously do your own research but be warned not to buy on the basis of the positive comments from those on this BB!



Bill