As the wild ride on the global markets continues, shares in Playtech Ltd. -- of late the victim of market bears -- lost 6.43 percent despite the announcement of its fourth Italian poker licensee.
Cogetech S.p.A., the land-based and online operator, is to join Playtech's online poker network. Initially, the site will be available in play-for-free format though will later this year offer real-money, tournament-style play.
While IGamingNews could not reach Mor Weizer, chief executive of Playtech, for comment, he did say in a prepared statement that his company is capturing an "ever more prominent position" in Italy.
"It's a nice kick in the bollocks for Playtech," quipped Richard Carter, an analyst with Numis Securities in London, in a telephone conversation with IGN today. "They've captured a big share of the market."
Indeed, in a research note this morning, Mr. Carter indicated that Playtech controls around 60 percent of Italy's online poker market, making the playing field a bit more competitive for the likes of Boss Media A.B., which this week launched its own network in Italy.
Like Playtech's network, Boss Media's will be available to Italian residents exclusively -- this in accordance with Italian regulations that took effect in November 2007.
Under the regulations, tournament-style online poker is considered a game of skill, Yan Pecoraro, an attorney with Portolano Colella Cavallo Studio Legale, told IGN last week. With regard to taxation, however, 3 percent of a network operator's total turnover is destined for the government coffer.
"On taxation, I think there are some concerns from foreign operators," Mr. Pecoraro said, "because if my understanding is right, in other countries, the tax is articulated not on the total amount of money collected but on the winnings, which makes a very big difference."
Mr. Carter, who has a "buy" rating on Playtech, said his forecasts will remain unchanged on the company's activity in Italy as the Internet poker market there has yet to be proven.
Meanwhile, some of Italy's own operators are getting in the mix. With authorization from the country's regulator Amministrazione Autonoma dei Monopoli di Stato, Microgame S.p.A. and Gioco Digitale S.p.A. launched earlier this month and were positively received, Mr. Pecoraro said.
Megabet Public Company Ltd., the Cyprus football and betting specialist, has also launched a poker offering.
For its part, Playtech has poker deals in place with two of Italy's largest gambling operators, Snai S.p.A. and Sisal S.p.A., having also done a deal with Eurobet Italia, an international sports book owned by the Gala Coral Group.
Stay tuned for a more detailed look at the Italian poker market in the coming weeks.
Chris Krafcik is the editor of IGamingNews. He lives in St. Louis, Mo.