PartyGaming Shows Ups and Downs in First Quarter Report

PartyGaming reported that its revenues dropped by 22% in the first quarter of 2009, but its total average daily revenues grew marginally well. Performance was strong in both the casino and sports betting products, but the company was not satisfied with its poker brand that showed a drop of 33% in revenues.

“Total net revenues grew by two percent on a daily basis to $1,111,800 versus the previous quarter despite continued competitive pressures in poker, further strengthening of the US dollar and a weak macroeconomic environment all continuing to impact performance,” said Jim Ryan, CEO of Party Gaming.

PartyGaming have recently come to an agreement with the US DOJ and compensated them for their activity in the US prior to the UIGEA coming into force.  However, this has been seen by many as a waste of funds as it still does not allow them to attract players that are US based.

Until the UIGEA is repealed, if it ever is, PartyGaming are have to work hard to attract increased business and to get back on track after losing so much of it's income when forced out of the US.  However, if the UIGEA is eventually recinded then PartyGaming should be able to attract many of the players they once had and look prime as a quick takover target for a large US facing company to enter the gaming market quickly.

We'll just have to wait and see what happens in the US and watch to see if PartyGaming can attain the growth required to keep them a formidable gaming site.

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