Online Gambling Sector Recovering
March 1st, 2007
The online gambling sector was showing signs of recovery this week after a number of gaming companies posted strong trading results. Sportingbet led the way announcing a 54 per cent rise in operating profits, to £2 million, for the three months to January, while Playtech’s total revenues for 2006 showed an 89 per cent increase to $90.1 million.
Sportingbet, which also reported an operating loss of £243.9 million for the six months to 31 January, including a £252m charge for the US exit, called for greater consistency and harmonisation of the regulations governing the industry in different markets.
“There is little sign that the market distortions which now exist across various global markets show any signs of being resolved,” it said. “With diverse government policies ranging from licensing and regulation to blatant protectionism now in place, the need for clarification has never been greater.
“Sadly, there is little sign that authorities such as the EU have the appetite to address the issue at present.”
Playtech chairman Roger Withers, speaking about the recent turmoil in the industry, called the US Unlawful Internet Gambling Enforcement Act 2006 a “watershed moment” for the online gaming industry, which forced many gaming operators to make fundamental changes to their business models.
He added that “Playtech’s broad international portfolio of clients, especially in Asia and Europe, meant that the impact of the prompt withdrawal by its licensees from the US market was greatly reduced.”
Entry Filed under: Gambling News
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