Online Casino Industry Healing Slowly from UIGEA

Several companies have incurred astounding financial loss as a result of the serious repercussions the Unlawful Internet Gambling Enforcement Act (UIGEA) has caused to the entire online gambling business. However, in places such as Europe, Asia and Latin America more companies are beginning to find alternatives to the American market.

Playtech, the world's leading us online casino software producer, is one of the companies that were struck by it. The company has released figures showing, after the hit it took on the implementation of the US' controversial UIGEA, it is on its way to full recovery. Before UIGEA only $ 2.2 million short of figures was achieved; the figures of the company in the first half-of-the-year show an 80% jump in all non-US revenues. Revenue of Playtech in the first half of this year climbed to $44 million from $24.5 million. In the previous year, Playtech took in $46.2 million, which included US income.

The stocks of Playtech were hurt because a number of online casinos had to shut their doors, even though not directly involved with payments and other things the UIGEA made illegal. Playtech's results, for the online casino industry as a whole, represent a positive post-UIGEA life, and will be encouraging the online gambling industry.

888.com however, is less fortunate. Between the US Department of Justice and major online gambling firms like 888.com and Party Gaming (poker) the subject of talks on pre-UIGEA activities resurfaced over the weekend in a speculative article by the "The Independent" newspaper in the UK.

The article was released just before 888 released its quarterly results, the company will face a barrage of questions on speculation that the US authorities are planning to claw back up to $120 million (GBP60 million) from the firm.

Claims that the US Department of Justice is gunning for operators under the UIGEA the article of The Independent stated. It also speculates 888.com and its rival Party Gaming may be forced to cough up profits made before the online gaming ban became law, despite its withdrawal from the US market. To report a pre-tax profit of $16.4 million on revenues of $94.6 million is what analysts are expecting from 888.com. It is estimated that full-year revenues for 2007 will be roughly $198 million, up from $157 million in 2006.

Over half of 888.com's revenues came from the US at the time of America's ban, but the company only reduced its headcount by 25 percent. Analysts believe that the growth 888.com has is now underpinned by a strong appetite for internet gambling in the UK, particularly among women.