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| | | March 2 - According to one of the world's largest online gambling companies,
PartyGaming Plc, the United States online gambling ban has directly contributed to the company's slump in profits by a massive 57 per cent.
Yesterday (Thursday, March 1st) the LSE-listed Internet gaming company announced that it had taken a 'one-time knock' of $243.2 million by pulling out of the United States, while its pre-tax profits dropped to $138.9 million.
This means that PartyGaming has overnight lost 71 per cent of it business.
The decision by PartyGaming, which owns and operates online poker room PartyPoker.com, to exit the United States was brought on by the passing of the Unlawful Internet Gambling Enforcement Act (UIEGA).
Once US President George W Bush signed the act into law in December last year,
it became illegal for US banks and financial institutions to process any and all
online gambling-related payments.
This has meant that it has become virtually impossible for US-based online
gamblers to fund their online casino, online poker, online sports betting and online bingo accounts, forcing many online gambling groups such as PartyGaming to exit the US market.
However, there has been a silver lining for PartyGaming because since its
restructure after the United States pull out, the company reported a 13 per cent
increase in total sales to $1.1 billion following its expansion outside of the
US.
PartyGaming CEO Mitch Garber was quoted as saying that while the US exit was a
massive blow for the company, it was also an opportunity to broaden its
operations throughout the rest of the world.
Visit PartyPoker.com today.
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