Party On
PartyGaming (PRTY.L) is reporting that its poker revenues have recovered after being hit by the U.S. Internet gambling ban. In a trading update released Thursday, the company said daily online poker revenues in the four weeks to Dec. 11 have increased to $721,000 after falling to a daily low of around $637,000 after the Unlawful Internet Gambling Enforcement Act was signed in October. The company attributed the loss to the defection of some of its bigger gamblers outside the United States to privately owned poker Web sites that were allowing players to compete with U.S. rivals. Gross daily revenue in the period, excluding sports betting, has averaged approximately $921,000 per day and overall player volumes have averaged approximately 52,000 active players per day. The group now takes 67 percent of its revenues from Europe, the Middle East and Africa, and 27 percent from Canada and Central and South America. Results for the year ending Dec. 31, 2006 will be released on March 1.
32Red Feeling the Pain
Sports betting group 32Red (TTR.L) revealed on Wednesday that it is in breach of its loan agreement with the Royal Bank of Scotland (RBS) due to its June acquisition of sports book Bet Direct. 32Red said Bet Direct, which it purchased for £12.5 million, was hit hard by a run of horse racing results in October and November that proved disastrous for the sports betting sector. The company has an outstanding loan with RBS of approximately £6 million, but said it has a good relationship with the bank and has so far met all interest and capital repayments. It also reported a cash balance of approximately £5.3 million at the close of business on Dec. 13. The company said it plans to move Bet Direct's operations to Gibraltar.
Perpetual Trustees Ups Its Stake in Tabcorp
Australian financial group Perpetual Trustees said on Tuesday that it has increased its shareholding in Tabcorp (ASX:TAH.AX) to 9.22 percent--just within the Victorian Gambling Regulation limit of 10 percent. The Australian reported that Tabcorp could become a takeover target, with James Packer's Publishing and Media Ltd. cited as one potential bidder. Tabcorp shares closed up 52c to $16.89 on Friday.
Bowmans Merges with Bet365
U.K.-based Bowmans closed its doors last week in Gibraltar and immediately thereafter announced a merger with gaming firm, Bet365. The two companies joined in hopes of combining their resources against the impact of the United States Unlawful Internet Gambling Enforcement Act. Bowmans, which withdrew from the U.S. market following the ban, will re-launch Bowmans.com, powered by bet365, featuring a new sports book, poker room, casino and games room. All existing Bowmans Poker U.S. customers were transferred to Bodog.com Nov. 28, following Bodog's acquisition of Betcorp Limited subsidiaries, which included Bowmans Poker. Meanwhile, all existing Bowmans International customers moving to bet365 will retain their passwords, four-digit security codes and user names.
Reporting
U.K. mobile gaming company Probability PLC (PBTY.L) said on Thursday it expects to be profitable and cash generative in 2007; its turnover for the first half of 2006 (to Sept. 30) registered at £1.74 million, up dramatically from £287,000 during the same period in 2005. Releasing its first interim results since floating on the Alternative Investment Market in August, the company reported a group operating loss before goodwill and exceptional items of £642,000 (compared with £29,000 in 2005). The company has £3.5 million in cash on hand.
Probability Plc - Interim Results.