Bingo news

PartyGaming Reveals Financial Impact of UIGEA

On Thursday, 14 December, 2006, Online Site PartyGaming claimed that their profits from online games, like bingo and poker had gone back to normal, or about $721,000, after sliding down to $637,000 as a result of the U.S. Government's passing the Unlawful Internet Gambling Enforcement Act (UIGEA) on October 13, 2006. The UIGEA prohibits financial institutions in the United States from conducting financial transactions that are related to gambling activities.

Nonetheless, PartyGaming said that they were also affected by the defection of their larger clients outside the United States, which have joined other online gambling sites that are ignoring the UIGEA Ban. A spokesman for the company said that their overall profit per active customer has suffered by the loss of their big clients, but that problem has been partially solved by the strong influx of new players that are signing-up at their online site that averages 1,400 players per day.

About 67% of PartyGaming's revenues come from the continent of Europe, the Middle East and Africa, while about 27% come from Canada and both the Central and South American continents. PartyGaming had to cut 945 or about 41% of PartyGaming's workforce when the U.S. ban was imposed last October 13th. PartyGaming also said that not including their sports betting activities, their overall everyday revenue during the 4 weeks until December 11th is only about $921,000 and their total player volume is only 52,000 players per day. In sports betting, the company recently acquired Gamebookers Company. PartyGaming's profits per day are around $65,000, while their total profits reached over $46 million by November 30th. The year end results for December 31, 2006 will be available by March 1, 2007.


Sunday, December 24, 2006
Donna Regan

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