Quote:
Originally Posted by WhatisROI
Hey PokerAddict.
In your opinion is there any likelihood that WSOP will go under as well?
WSOP now has a virtual monopoly in a state that will do about $10m a year in rake. They also make about $15m a year in NJ (hard to pinpoint because 888 reports on same license). Considering they have a royalty agreement as opposed to software development costs, and the product compliments its live poker rooms and tournaments, I think WSOP is in no risk of following suit.
Another way to look at this is that their software partner (888) is operating at a total loss in Delaware. Its DE revenue is $0 because the tax rate is 100%. I think 888 continues to operate at a loss happily there in the hopes of winning other lottery contracts. On the near 0% chance WSOP decides to give up, I think you would see 888 takeover.