Party Hurting -- Online gaming group PartyGaming announced last Friday that it expects to incur a one-time expense of $250 million in the second half of 2006 after closing its U.S.-facing operations. Earnings before interest, taxes, depreciation and amortization (EBTIDA) for the year will be "significantly lower than it was in the first half of 2006," the company said in a statement. After President George W. Bush enacted the Unlawful Internet Gambling Enforcement act of 2006 (UIGE) on Oct. 13, PartyGaming reported average daily gross revenue of the non-U.S. business has been 2 percent lower than in the third quarter. "However, as there has been less than one week since the group suspended taking wagers from its U.S. customers, it is too early to comment precisely on what impact there will be going forward, if any, upon the group's non-U.S.-facing revenues," the company said.
Acquired by Dog -- Net gaming company Betcorp today announced its plans to sell its Canada- and Antigua-based operations to online gambling and entertainment company Bodog. The sale, which will effectively remove Betcorp from the U.S. online gaming market, was executed in response to the enactment of anti-Internet gambling legislation in the United States. The new legislation made it impossible for the Betcorp to offer services to U.S. residents, who provided for 85 percent of the company's revenue, it said in a statement released late Friday. Betcorp will receive a cash consideration of $9 million, payable in five installments, with Bodog assuming liabilities of $2 million.
Safe Move for Crypto -- I-gaming software provider CryptoLogic today announced a three-year contract with Scandinavian poker site Betsafe. The agreement, made through CryptoLogic subsidiary WagerLogic, will introduce CryptoLogic's poker software to Betsafe players later this year. "Thanks to a five-year focus on international markets, CryptoLogic's software now powers the world's largest shared poker network that excludes U.S. players," CryptoLogic president and CEO Lewis Rose said in a statement.
Software Shakeup -- After several I-gaming software providers--Ongame, Boss Media, Playtech and others--announced that their software platforms cannot be used to provide Internet gambling services to U.S.-based players, several online gambling Web sites will have to change platforms to continue taking U.S. bets. Private operators such as GoldenPalace.com and FullContactPoker.com will reportedly continue taking U.S. play, banking on the possibility that the U.S. prohibition will prove unenforceable. David Szetela, a spokesperson for privately-owned software developer CyberArts, predicts many private operators will migrate from one software provider to another in the coming months. "Our platform is such that we can get operators back up and running very quickly," he said.
Permission Granted -- E-bingo solutions provider GameTech announced Thursday that it was granted a license by the Nevada Gaming Commission to manufacture and distribute gaming devices in the state of Nevada. GameTech is the latest company to appear before Nevada state regulators, seeking permission to provide wireless gambling for games that can be used in public areas of the state's casino resorts. Regulations for the devices were passed in March.
Seizing the Day -- U.K.-based bookmaker and online gaming operator Ladbrokes today announced plans to invest a further £3 million ($5,614,721 million) into its 2007 Poker Million tournament, with the intention of creating a European competitor to Las Vegas' World Series of Poker (WSOP). John O'Reilly, managing director of Ladbrokes' e-gaming division, said that more than half of the WSOP entrants qualified online, meaning that future WSOP events would be compromised by the UIGE. "[UIGE] opens up a huge opportunity for an offline poker tournament in Europe to rival the World Series," he said. "Poker Million is already the biggest poker event in Europe and we believe that by investing in the tournament and changing the format, London may rival the World Series." Currently, the tournament winner will earn $1.2 million out of a total prize pool of $4.1 million, which, through Ladbrokes extra investment, will double next year.