PartyGaming's Recent Figures Not So Festive

PartyGaming Plc., owner of Party Poker and Party Bingo says sales are "slightly" below May and June's expectations. They are placing some blame on rivals who still accept bets from Americans despite the legal issues involved.

Dropping an additional 12%, the largest drop in 15 months on the London Stock Market, PartyGaming explains that more money went towards larger bonuses to draw in more players account for this drop according to a statement made on July 8, 2008.

Due to the 2006 UIGEA bill, European companies have pulled out of their largest market, the USA and subsequently have been trying to recoup loses ever since.

Concerns over whether US authorities may prosecute European companies who accepted US-based bets before being barred, has lent a major hand to the 22% drop in PartyGaming's stock this year alone.

Comeback struggle
Introducing new web slot machines, heavy promotions and larger cash give-outs have encouraged more players to sign up as of late.

However, on their sport betting side, unfavorable results from the European Soccer Championships has once again sunk some of PartyGaming's profit margins.

Replacing Mitch Garber as the new CEO is Jim Ryan, who hopes to ignite major changes for the company. Already, first-quarter sales rose 21% after gamblers made more bets on roulette and other casino games while casino sales bumped up 45 percent. Poker climbs at a slow steady pace with 13% despite being the main contributing factor for PartyGaming.

First-half figures are expected to be published August 29, 2008.