Publicly owned companies have started to post and report their first quarter financial results. The United States economy has been struggling recently and companies reporting lower earnings and reduced earnings estimates are no longer the exception but the rule. One of the industries people believe to be impervious to hard economic times is gaming. Brick and mortar casinos may beg to differ based on the recent economic landscape and the fact they are no longer making as much money or losing money. So what does it mean that companies such as 888 Holdings, the parent of Pacific Poker, and PartyGaming have reported revenue growth and earnings above expectations?

In a strict sense it means many of the online companies are making money. While I have only been able to look at the first quarter financial results from publicly held companies, it is not unreasonable to estimate that the two big online poker rooms PokerStars and Full Tilt Poker are making similar or greater amounts of money. However because both of those online poker rooms are private their financial results will not be published for general public consumption.

It is possible people are simply preferring to play poker online instead of in a casino. The only cost to play online is the risk of their bankroll, a computer, and internet connection. The convenience of being able to play when you want is also very strong. It is simply no longer necessary to travel across the country to find action. Even with a law like the Unlawful Internet Gambling Enforcement Act, thousands of players from the United States make their way to whichever online poker room they want and play. Another possible explanation is that the brick and mortar casinos simply have limited space. People may not want to travel to a casino and have to put their name on a list to sit at a table.

So while the economy struggles and some brick and mortar casinos struggle, online poker rooms continue to thrive. Publicly held companies that own internet gaming operations are doing well and so are their shareholders. When the economy picks up, online gaming companies will probably continue to make money hand over fist.