Online Casino Profit Down But Online Poker Up
The year that has ended only recently has been a tumultuous year by all standards, at least with regard to the online casino business. Mainly due to the ban on online casino gambling in the United States, the business has seen a sharp drop in revenue and profits, which later has somewhat recovered and given signs of life and even optimism. Some numbers released by an online casino company last week shed light on the specifics of these business trends.
Online casino group PartyGaming PLC reported its profits for the full year 2006 were down by 5.7 percent. Into these numbers are calculate reorganization costs. The online casino company’s reorganization, mainly the loss of 945 jobs, cost it a quarter of a billion dollars. Reorganization, however, includes also such additions as multi-lingual and multi-currency versions of casino games and marketing campaigns directed at international markets. Such huge numbers are a blow to any company. If this online casino group was able to sustain them, it is no indication that other operators were able to. The loss should be taken as a sign for what the entire business has gone through. The recovery less so.
Online poker seems to be the key for future profits, though. The company revealed it has enjoyed a pick-up in online poker revenues that have come out to an average of 1.3 million dollars a day throughout the month of February. “Trading patterns since the year end have seen continued recovery in poker and casino revenue, in line with the board’s expectations.” The international market, which the online casino company is now targeting, and online poker, which proves to be a golden egg of revenue, are clearly the directions to go in attempts to revive the online casino business in 2007.