PartyGaming announces profits rise

Leading online gambling company Party Gaming has released its third quarter results for the year showing a 24 per cent annual increase in revenues to $116 million.

The results for the Gibraltar-based firm are five per cent higher than those for the previous quarter and greater than the $93.3 million for the same period last year.

The company stated that solid performances from its online casino operations and sportsbetting offset a slight decline in poker revenues, which were down three per cent to $74.8 million.

Casino operations generated a 158 per cent improvement from $14.2 million last year to $36.7 million while the company’s sportsbetting income rose 91 per cent from $2.2 million last year to $4.2 million most recently.

Much of the quarter's improved performance came from strong growth in casino operations achieved despite a 14 per cent drop in yield per active player day from $20.3 in 2006 to $17.4 this year following the loss of many of the company’s high-spending US customers.

Online activity is traditionally quieter over the summer and this was reflected in reduced third quarter new player sign-ups, which were down 14 per cent to 129,700. However, Party Gaming stated that this had been offset to some extent by a particularly strong first half with the number of new player sign-ups up 44 per cent on the equivalent nine-month period last year.

The company said that fourth quarter trading was looking promising as it was increasing nine per cent on the previous quarter with active players per day averaged 65,000 generating average daily revenues of $938,000 and casino daily revenues of $569,000.

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Online Gaming Boss Released

After a brief appearance in the Amsterdam District Court Wednesday afternoon, during which his legal team told an extradition hearing they would not fight his transfer to France on a warrant of arrest issued in June this year at the behest of French gambling monopolies, Unibet CEO Petter Nylander was released to the more comfortable surroundings of a local hotel after agreeing to remain in the Netherlands.

As reported here yesterday, Dutch police served a European warrant issued by the French judge on Nylander as he arrived at Amsterdam’s Schipol airport. The warrant was based on 19th Century French protectionist laws with the arrest creating international furore that included criticism from the European Commission.

The incident has caused red faces in a French Government currently trying to negotiate a rapprochement on online gambling with European Union officials with the Budget Ministry stating that it regretted the timing of Nylander’s arrest and hoped that Française Des Jeux, the French lottery monopoly, and PMU, the monopoly that governs betting on horses, would drop their original complaints that had started the case against Unibet.

'We just want this circus to end as soon as possible,' said Ewout Keuleers, the Belgian lawyer for Nylander.

'It is disproportionate to try to enforce a criminal case against Mr Nylander.'

“We are doing nothing illegal because we have a licence for Britain,” said Nylander before his arrest.

“According to the European rules, if you have a licence for one member state you are authorised to use it in the others.”

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Online Casino CEO Arrested

Dutch police serving a European warrant issued by a French judge arrested the Chief Executive Officer of online gambling group Unibet, Petter Nylander, on Monday but the whole affair may soon come to an abrupt end.

The arrest comes as France is working towards a reasonable rapprochement with the European Commission over its monopolistic policy on online gambling. The Financial Times newspaper reported that the French Government had ordered the case against Nylander dropped but that events had already been set in motion with the warrant having been served.

The warrant was issued on the basis of proceedings issued last year against Unibet by Française Des Jeux, the French lottery monopoly, and PMU, the monopoly that governs betting on horses. The organisations claimed that Unibet was in breach of national laws passed in 1836 and 1891 protecting State-owned monopolies.

The French Government now appears embarrassed by the arrest, which comes as Paris seeks a compromise deal that will position it in compliance with European Union principles.

'It is not a matter between the State and Unibet,' said a spokeswoman for the Budget Ministry of France.

“Française Des Jeux and PMU will be told to drop their complaint.”

The newspaper also reported that the arrest was criticised by Unibet, the European Commission and Swedish politicians, all arguing that Unibet’s operations were legal under European Union law.

“A worrying fact is that the European arrest warrant, an instrument put in place to combat terrorism and organised crime, is now used by the French Government to punish those who fight French protectionism,” said Christofer Fjellner, a Member of the European Parliament for Sweden.

“What will be the next sector to be threatened with French arrests? The French are turning the European arrest warrant into a political tool.”

Nylander will now appear before a judge in a closed hearing in Amsterdam to determine the length of his detention although a European Commission source was reported in the Financial Times as stating instructions have been given to drop the proceedings.

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Online Casino For Sale

A London based Leisure and Gaming firm has announced that it is to seel one of its long established online casinos, AcropolisCasino.com. for a price of $500,000.

The AIM-listed company is one of the world’s largest betting and gaming companies and owns the operation through its subsidiary, Grouse Entertainment.

The online casino has a database of some 24,000 non-US cash players and, despite no recent attempts at marketing the site and a decline in net wins since 2006 levels, AcropolisCasino.com still generates an average of $100,000 per month in net win and $16,000 per month in EBIT since the beginning of the year. This is through returning players who like the established and recognised brand that also features natural search engine optimisation.

The online venue has been listed at eGamingBrokerage.com who revealed that Leisure And gaming are exploring the possibility of selling Grouse Entertainment as it is the legal entity that owns and operates the AcropolisCasino.com. Grouse holds a Curacao gaming license and owns its own fully depreciated equipment and uses Playtech casino software while outsourcing payment processing and customer services.

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EU Issue US with $100bn IOU

Leading figures from Europe’s online gambling industry have compelled the EU to pursue a $100 billion compensation bid from the US, after the losses incurred as a result of the Unlawful Internet Gambling Act (UIGEA) 2006.

Since its introduction in October last year the UIGEA, which makes it illegal for banking facilities to accept US money transfers to and from online gambling sites, has forced European gaming giants including PartyGaming and Sportingbet to exit the US market.

Clive Hawkswood, CEO of The Remote Gambling Association (RGA), whose members include prominent bookmakers Ladbrokes and William Hill, commenting on the renewed action, said, "The US has used an illegal trade barrier. This sets a precedent. If the EU does not act, it could encourage the US to do the same elsewhere."

Last week’s offer of compensation from the US to the EU was rejected and a deadline of October 22nd has been given for the America to deliver a suitable reparation package.

‘The offer made by the US so far is insufficient. We are continuing to negotiate to secure improvements,’ said a spokesman for the EU Trade Commission Peter Mandelson.

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Betfair Wins Major Award

Online betting group Betfair has announced that it took home top prize at the third annual eGaming Awards held late last week at London’s Natural History Museum.

Betfair is a leading online betting exchange and lets punters choose their own odds and bet against each other even after an event has started. It processes five million transactions a day and more than 300 bets a second and took home the award for Operator of the Year alongside Everest Poker, who won the Poker Operator of the Year prize.

The Casino Operator of the Year and Land-Links Partnership of the Year honours went to 888.com while Sportingbet won for the European Sportsbook Operator of the Year.

There were additional prizes for SkyBet, who were honoured with the Innovation of the Year and Green Operator of the Year honours, and Gala Coral, who received recognition for the year’s best Online Marketing Campaign. Unibet took home the prize for best Offline Marketing Campaign, whilst Chipleader won Affiliate Programme of the Year and Svenska Spel was honoured as 2007’s most Socially Responsible Operator.


Betfair topped the awards by publishing its latest results, which showed that its number of registered customers is now in excess of one million with active users up 57 percent to 443,300. Revenues of $364 million resulted in a 26 percent rise in underlying earnings to $96 million while one-off investments of around $24 million contributed to a fall in pre-tax profits to $50.6 million from $73 million last year.

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The Racing Post is Sold

Dublin-based investment firm FL Partners has announced the acquisition of horse racing and betting publication The Racing Post from newspaper publishers Trinity Mirror for an estimated £1.7 million.

The deal includes the publication along with its website and other titles in the betting business and will see some executive changes with former editor Alan Byrne appointed as Chief Executive Officer and Editor-In-Chief while FL Directors Peter Crowley and Neill Hughes are to join Board as Co-Chairmen.

Mr. Crowley stated that FL Partners was passionate about racing and that it has a real commitment to maximising the potential of the business.

For FL Partners, this is a compelling investment opportunity, a strong cash-generating business with a committed staff and a fantastic brand which can be nurtured, enhanced and developed, said Crowley.

"It's a great thrill to return to the Racing Post and I am looking forward to working again with its excellent staff,” said Byrne, who edited the publication from 1993 until 2002, as well as being 'the bible' for racing people, the paper's extensive coverage of football, golf and all other sports has a very strong following."


Everyone in the racing, bloodstock and betting industries relies on the Racing Post as the definitive source of data and quality editorial coverage. It is our job now to ensure that it meets and exceeds their expectations.

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