Guess What? Another Poker Firm Going Public!

Stepping up to the equity markets starting line next [drum roll]….Cassava Enterprises, operator of online poker room, Pacific Poker, as well as online casinos Reef Club Casino and Casino-On-Net. Cassava is the latest in what might become a long line of online gaming companies going public. PartyGaming, Empire Online, Sportingbet, and Cryptologic have all entered the public markets, while Ultimate Bet and PokerStars may be on their way.

Based on recent reports, the flotation is expected to generate $1.5 billion for the company, which includes CEO John Anderson’s 4%, a $60 million payday.

That is nothing, however, compared to the windfall the firm’s co-founders will see. Israeli brothers, Avi and Aaron Shaked, own 70% of Cassava Enterprises. The math challenged, they will be making over one billion dollars if all goes to plan. Another 20% is held by a family trust formed by Shay and Ron Ben-Yitzhak.

One of the big winners in this new high stakes game? HSBC, the lead underwriting company, which should receive around a $15 million fee from Cassava for its role in the flotation.