Leaving U.S. to cost PartyGaming Plc. $250 million

PartyGaming Plc. announced today that pulling its business out of the United States is expected to cost the company approximately $250 million during the second half of the year. The company also stressed its expansion and growth in other markets.

Though the company chose to suspend its business in the United States, including play on PartyPoker.com, after the Unlawful Internet Gambling Enforcement Act was signed, they were able to report that their group revenue was up 53%, with an increase of revenue from non-U.S. operations up 158% from $35.6 million in 2005 to $92 million in 2006.

PartyGaming, Plc. reported significant increases from the non-U.S. sectors of several other areas of the business as well, including active player days, real money poker sign-ups, and poker and casino net daily revenues.

"Whilst the U.S. has historically represented the majority of the Group's revenues and profits, I am pleased to report that our non-U.S. business continued to deliver strong growth in the quarter with revenues up 158% year on year to $92 million, active player days up 141% to 4.1 million, and the number of unique active players up 161% to 331,520," said Mitch Garber, PartyGaming, Plc. CEO.

The company does plan to hang onto its U.S. player database in case the new law changes in the future. Garber told media that it might be wishful thinking, but there could be a strong backlash from players in the United States as well as changes in the House and Senate.

Sportingbet Plc., owner of Paradise Poker, also reported this week that its own withdrawal from the U.S. market is likely to cost the company £210 million.

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