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Copyright 2005 The Financial Times Limited
Financial Times (London, England)

March 7, 2005 Monday
London Edition 1

HEADLINE: Online poker gamble pays out for ESPN

BODY:
More than 30,000 people signed up for ESPN's new online poker website within in a few days of its launch, reflecting surging consumer interest in the game.

The sports media company launched its free online poker game last week as part of its multimedia effort to capitalise on a trend spurred by TV programmes such as the World Poker Tour and the World Series of Poker, which airs on ESPN's cable television network.

"We took a look at the success of the World Series of Poker and asked what would an online accompaniment be?" said John Kosner, senior vice-president of new media at ESPN. "Having a first-class poker game is another way to entertain audiences."

ESPN also plans to launch a wireless poker game along with a poker-related book, DVDs of the 2004 World Series of Poker and a line of products such as branded chips and tables.

Players on ESPN's poker website do not bet real money as online gambling is considered illegal by the US Department of Justice. Players play against each other and the winner of the first 11 weeks of play will win a seat in the World Series of Poker tournament.

While the site does not generate money from bets, it broadens the scope for licensing fees associated with the brand.

ESPN's move marks the latest attempt to gain a foothold in online poker. British online betting firm UKBetting last week launched poker on Goldbet.com, its European website. WPT Enterprises, creator of the World Poker Tour, will in the next few months launch a poker site for markets outside the US.

Online gamblers lost Dollars 237bn worldwide last year, according to a report released last week from Dresdner Kleinwort Wasserstein, the financial services firm. That figure is expected to rise to Dollars 277bn by 2008.

The US is the largest market at Dollars 73bn, nearly three times bigger than its nearest competitor, Japan. Within Europe, the UK is the largest market at Dollars 12bn.

Online gambling has grown to Dollars 9.2bn since its birth in 1995 and is forecast to grow at a 22 per cent compounded annual growth rate between 2003 and 2008, driven particularly by poker, said DKW.

Online poker captured the public's attention when two winners of the World Series of Poker qualified for the tournament through online poker games.

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