Industry News
Revenues Rise for Online Casino that Left U.S. Market
A British Internet gambling company, 888 Holdings PLC, said last week that full-year net gaming revenue rose seven percent after clients gambled more and the company won new customers — even though it has exited the U.S. market.
Total revenue from gambling operations rose to $290 million -- €223 million -- in the 12 months through December 31 from $271 million in the previous year, the company said.
Even more surprisingly, 888 Holdings also said it started the new financial year well with record turnover in January 2007 for non-U.S. operations.
Daily first-time depositors rose more than 35 percent during the first 11 days of this month, contrasted with the period immediately after the company's departure from the U.S. Average daily deposits advanced more than 35 percent during the period.
"Following our exit from the U.S. market in the fourth quarter of 2006, the company has worked hard to continue expanding its non-U.S. business and we are especially pleased with the results released Wednesday and our performance in recent months," said Gigi Levy, the chief executive officer of the company.
European online gambling companies have been forced to leave the lucrative U.S. market after the U.S. Congress in essence banned online gambling last fall with a proviso to a bill aimed at improving port security. The bill was signed into law by President George W. Bush on Oct. 14, and is said to have made it illegal for banks and credit card companies to settle payments to Internet gambling sites.
The decision closed the most lucrative region in a market worth $15.5 billion last year in "spend" value — the amount gambling companies win from their clients, or the amount gamblers lose.
Two firms, Sportingbet PLC and Leisure & Gaming PLC, both sold their U.S. operations for a mere $1, a move now being seen by gambling industry analysts as quite foolish.
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