Poker Stars is Proof that Online Gambling can be very Profitable
Online gambling is an extremely profitable industry as long as you are able to make a good name for yourself. Poker Stars is proof that there is a significant amount of money to be made with online gambling, and it only takes a little time and a lot of effort to build up to high levels of income from an online poker website, that is as long as you take the time to pick out quality games from suppliers such as “Casinowebscripts” to keep players entertained longer.
Poker Stars began in the late 1990’s when programmer Isai Scheinberg began writing the program for the poker site that would later become one of the most popular in the world. By 1999 the basic Poker Stars program was finished and it was time to test it out and see how well the complete casino solution worked in a real life situation.
The testing did not occur until 2001 when the beta Poker Stars site was launched with just play money. After success for a few months with just play money, they decided to move ahead to a real money system and the rest was history.
The site continued to grow throughout the years, and the company was moved to the Isle of Man in 2005 in order to maximize their earning potential thanks to a 0% corporate tax in the area.
Poker Stars was only marginally popular until something very fortunate happened for the company in 2003. Chris Moneymaker, an accountant with no pro poker experience managed to leverage a small $39 satellite tournament victory on Poker Stars into a massive victory at the World Series of Poker. By coming in first place in the event after taking out a huge list of skilled players he banked $2.5 million and players flooded Poker Stars to try and do the same.
The Major Advantage of Private Ownership
Poker Stars didn’t reach its full potential until many of its competitors were forced out of the US market, the most lucrative online market in the world at the time, thanks to the UIGEA that was passed in the year 2006. Most publicly owned companies who had to deal with shareholders didn’t have a choice but to pull back from the US market when the legality of online poker became questionable, they could no longer develop a casino in the area. Poker Stars didn’t have to worry about that issue because they are privately held by the Scheinberg family as well as some of the workers at the company. They decided to stay in the market and because of that they ended up with a 35% share of the world’s online poker market which is pretty significant.
During their peak Poker Stars was earning more than $1.4 billion from online poker each and every year. This is a massive number for most companies, and it is even more massive when you consider that the online poker market is worth around $4.8 billion in all.
After the collapse of the US poker industry Pokerstars earnings have dipped down substantially, but they are constantly working on new solutions to bolster those earnings, including getting back into the US market, and they are a great example of how much can be achieved in the online poker industry with a combination of hard work and a little bit of luck here and there.
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