Party Gaming Sees Profits Fall

Party Gaming has been struggling since the October 2006 enactments of the Unlawful Internet Gambling Enforcement Act forced their departure from the lucrative U.S. market. Party Gaming consists of Party Poker, Party Casino, Party Bingo and Party Gammon. The gaming company is licensed in Gibraltar, Kahnawake and Alderney and is now located in Gibraltar.

They have announced a 68 percent decline in profits for the year ending 2007. The year was its first without any U.S. income and the result was a decline in revenues from $128.4 million to $41.6 million.

Once out of the U.S. market, Party targeted the European market and Asia. They expanded their websites to include different languages, trying to attract players from different parts of the world to compensate for their loss of U.S. players. They are still struggling to recover. Party Gaming has seen a decline in its stock share prices. The decline in 2007 was 8.7 percent with a further 5.2 percent decline this year.

Party Gaming is looking at others ways of strengthening its financial picture. They have bought out competitor Empire Online Ltd and have entered into an agreement with German TV broadcaster RTL to open and poker tips website. Party Casino’s revenue position improved during the year and they have plans to develop a new slot machine based on “The Godfather” movie and three other movies.

Party ECO Mitch Garber has announced that he will leave the company in 2009 when his contract expires and return to Canada.

Posted: March 5, 2008

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