HeadsUp Entertainment (HDUP:PK) – Hitting the Jackpot with Poker’s Worldwide Popularity
Peruse the market for small cap stocks and you’ll find of bunch of geniuses trying to make money in the online poker world. Without naming names, a publicly-traded British Columbia- based company has created an online monopoly-type poker game using non legal currency until online poker becomes legal in North America. It makes as much sense as fingerless gloves. That’s why I’ve stayed away from trying to make money in the poker market until now. That is, until I discovered HeadsUp Entertainment Inc (HDUP:PK).
Although no one can truly determine the size of the poker market because because many of the online gambling companies are privately owned and are not obligated to publish their balance sheets, Goldman Sachs estimated the size of the U.S. online poker market to be $1.5 billion in 2008. Other reports I’ve read estimated the North American market to be approximately $30 billion with online poker raking in over $50 billion annually worldwide.
If you want the trace the surge of popularity of poker in North America, you need to know the name Chris Moneymaker. An accountant by trade and a $40,000 a year employee as per the U.S. Internal Revenue Service, Moneymaker parlayed $40 into $2.5 million in the 2003 World Series of Poker and from that remarkable run, 2.5 million poker players in the United States or as some may say, “dreamchasers” were born.
Recently, Canadian provinces have now entered into the online gaming market. A famous cynic once said, “Government-owned businesses are simply offshoots of tax revenue loss.” In English, this means that if enough non-taxable business is done in any jurisdiction in the world, you can bet that local and federal governments will aim for a piece of that pie. That remains true for any country in the world. In fact, cities such as Las Vegas and Atlantic City were built with that exact strategy in mind.
Some lottery corporations across Canada have now adopted the world of online gambling. British Columbia offers online poker, letting players bet as much as $9,999 a week in games. Earlier this month, Loto-Quebec announced its intention to offer online gambling and poker.
All of these activities have placed HeadsUp Entertainment in quite an enviable position for 2010. Over the past 6 years, the Company has built an all inclusive media model being the only ones producing poker television in the country, publishing Canada’s only poker magazine and now launching its online poker television network. By entrenching itself in its casino partner relationships, HeadsUp has implemented barriers to entry for international competitors and has positioned itself as a prime candidate for acquisition.
The company is not trying to create a gambling operation. Therefore and unlike many of the small poker sites, there are no legal issues to battle down the road. HeadsUp Entertainment is simply trying to capitalize on the popularity of the surge of poker in North American casinos. Unless ESPN is aiding and abetting, you can be assured that the current company will remain far from any legal quagmires as a result of gambling statutes in North America. With a focus on Canada, the company’s goal is to create a global media company exclusively focused on the poker market. Although the company directly benefits from the popularity of online poker sites, the company’s strategy is focused on the casino-based poker market. The company’s strategy encompasses the growth of the Canadian Poker Tour. In order to attract players to the HeadsUp Brand, the company will lure a membership through the exclusive Players Card and the Canadian Poker Player Magazine.
The Players Card is a membership program which will offer players significant products’ and services’ discounts. As a member of the Players Card, all members can earn enough points to participate in the year-end CPT Players Point Championship. Among other prizes is a $100,000 payday to the winner.
With partnerships with more than 40 casinos in Canada, Heads Up is building the Canadian Poker Tour along with the website canadianpokertour.tv which will benefit the casinos as well as the Canadian Poker Tour brand. To date, the company has signed one of the best talent pools in poker today for future events.
The final leg of the marketing trifecta is Canadian Poker Player magazine. Canadian Poker Player Magazine creates a forum to co-license events with casinos, corporate clients, players and readers to market the company’s events and products to a targeted audience. Already the #1 magazine for serious poker players in Canada, the company plans on increasing circulation to 100,000 within the next three years.
HeadsUp Entertainment currently has XXXXXXX shares outstanding. With three thriving brands in a rapidly expanding market, HeadsUp Entertainment represents one of the best risk-reward investment opportunities in the North American poker market today. Almost 3 million people in the United States play online poker and with well over 3 million in North America participating in the worldwide poker phenomenon, shares of Heads Up may be poised for explosive growth over the next few months.
Please expect daily posts regarding HeadsUp. For more information, you can visit http://finance.yahoo.com/q?s=HDUP.PK
Notice:
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