PartyPoker Excited By Future U.S. OpportunitiesPoker Revenue Falls 7 Percent in 2008 at PartyPoker But Legal Moves in U.S. Represent Opportunity |
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PartyGaming.com today announced its full year results for 2008 with poker revenue from PartyPoker.com falling 7 percent to $274 million from $295 million in 2007.
The number of poker sign-ups was down 22 percent in 2008 to just under 445,000 from 573,000 in 2007 while in the 4 weeks ended 4 March 2009, average gross daily revenue was $1,536,200. In poker, new player sign-ups averaged 1,550 per day and there were on average 51,100 active players per day, generating average gross daily revenue of $738,500.
The first five weeks of the year to Feb. 4 also showed growth.
Despite the lower results for poker revenue the company said “exciting opportunities” existed with moves to repeal the Unlawful Internet Gambling and Enforcement Act in the U.S. which has excluded the company from operating there since 2006.
It’s annual report said, “The shifting political and economic landscape around the globe may present the Group with a 
number of exciting opportunities for the future. US Congressman Barney Frank, Chairman of the House of Representatives Financial Services Committee, has announced his intention to introduce a bill that will seek to repeal the UIGEA, laying the ground for a legislative framework to license and regulate online gaming in the US.
"While there remain many hurdles to overcome before such a framework could become law, this would represent an important first step towards the Group being able to once again offer its services to customers in the US, which remains the world’s largest online gaming market.
"With a huge database of over two million real money US players that were active before the enactment of the UIGEA, as well as over 10 million free play gaming customers in the US, the Group should be well placed to benefit from such a development. Even before then, we are exploring opportunities to monetise the strength of the Group’s brands, in particular PartyPoker.com, through alternative business models that do not raise regulatory concerns under US law such as state-licensed intra-state online gaming.
Overall PartyGaming, which also operates PartyCasino, PartyBingo, and PartyBets saw continuing net revenue up 3 percent to $472.9m from $457.8m in 2007.
Shares in PartyGaming, which have climbed 50 percent in the last six weeks, were down 5 percent to 219.75 pence at 9 a.m. this morning as a result of uncertainty over the timing of a settlement with the U.S. Department of Justice over former founder Anurag Dikshit's illegal gambling charge for which he has agreed to forfeit $300 million of his fortune.
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