Sales Fall But Party Gaming Optimistic

Top Gibraltar-based online casino company PartyGaming reported on Thursday that its third-quarter sales had dropped 4 percent on the previous year to $112.7 million, in accordance with expectations.

The company said it remained optimistic, adding that its fourth quarter had started strongly, also as predicted.

"Our performance in the seasonally weak third quarter was in line with our expectations, with revenue up 1 percent versus the previous quarter," Party Gaming Chief Executive Jim Ryan said.

PartyGaming's poker brand was the hardest hit, news agencies reported, with third quarter revenue down 8 percent compared to the second quarter, due to fierce competition from rivals. However, this was partly compensated by a rise in revenue of 2 percent compared to the second quarter in its casino operations.

Players Benefit
In response to the tough times facing its poker brand, the company announced that it would increase the amount of bonuses and also broaden its loyalty program for long-term customers.

Ryan also told reporters that the poker division had reached its lowest ebb and would begin to grow from now on.

Last April, PartyGaming reached an agreement with the US Attorney's Office to pay $105 million to avoid prosecution under the Unlawful Internet Gambling Enforcement Act. The company was found to have provided online gambling to US-based customers before online gambling was effectively banned in the US in October 2006.