PartyGaming Blames Poker Sites Taking USA Players for Missing Sales Forcast

PartyGaming Plc,, owner of the Party Poker online poker site, said in a statement Tuesday that revenue since April 28 has fallen by slightly more than expected as a strong performance from casino operations was offset by a weaker-than-expected performance in poker and sports betting. PartyGaming highlighted continued strong competition, particularly from sites that accept players from the USA, referring mainly to PokerStars and Full Tilt Poker sites. But they still remain confident they are on track to increase profits this year by 40%.


PartyGaming dropped the most in 14 months in London trading. Larger bonuses were needed to draw players to some poker tournaments, and expenses climbed as well, the Gibraltar- based company said in the statement.


"Poker is based on liquidity," said Andrew Lee, an analyst at Dresdner Kleinwort in London. "You become more attractive the more customers you have and the quicker it is to get to a game."

Concern that U.S. authorities might pursue European online gambling companies which took bets from Americans before passing the Unlawful Internet Gambling Enforcement Act (UIGEA) has contributed to PartyGaming stock's 22 percent drop this year.

Full-year results will include $4 million of costs stemming from the replacement of Chief Executive Officer Mitch Garber, who was succeeded by Jim Ryan at the end of last month, according to the statement.

First-quarter sales rose 21 percent after gamblers made more bets on roulette and other casino games, PartyGaming said in April. Casino sales jumped 45 percent, while revenue from poker, the main contributor, advanced 13 percent.

The company is scheduled to publish first-half figures on Aug. 29.