Independent, The (London): THE INVESTMENT COLUMN: Take a seat at the 888.com table despite its

The story of online gambling companies and their coming to the stock market has been filled with as much intrigue, bluff and machismo as a game of no limit hold'em itself.

PartyGaming was the first to play an audacious float, and potential investors fell into two camps. Either online gambling was the commercial potential of the internet coming of age, combining humankind's age-old penchant for a flutter with the accessibility of the internet. Or, as others thought, this was a flop-in-waiting " the revenues accumulating in these upstart businesses are a house of cards; the US, which considers the activity illegal, could pull the plug on the industry; or poker is no more than a passing craze.

Those naysayers are enjoying a winning streak at the moment. PartyGaming warned growth was slowing, making many investors fold. 888.com has battled on with a bad hand and the share price collapse on its debut yesterday was perhaps inevitable " but it was unwarranted. Stock market gamblers should take a punt on the new company.

PartyGaming's problems are not widely shared. It has overspent on broad- brush advertising, attracting fly-by-night players who disappear having staked only a few dollars. The global outlook for the online gambling market is still convincingly strong. Some $8bn (pounds 4.5bn) was staked online last year, compared with $3bn in 2001, yet internet gambling is still only 5 per cent of total gambling. There many more punters to tempt online. It depends on access to the internet, of course, which is still low in many countries, but that is on the increase.

Among the top players in the sector, PartyGaming is a one product, one country business, and Sportingbet has a hefty sports- betting book that leaves it exposed if favourites have a winning streak. 888 is a better investment than either. It is not entirely dependent on the US, nor on poker.

The majority of its business in casino games such as blackjack and roulette. Such games do carry a 'house' risk that big punters can sometimes take the company to the cleaners. The cost of marketing also continues to rise because competition is mounting. But it is the larger sites such as 888 that offer the best " and safest " technology who will attract the most players over the long term. 888 is one of these, and will still be a significant player in a decade and beyond.

Investing in 888 will require a strong nerve, but with its brand and its dividend prospects, it is worth getting a seat at the table.