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bwin takes a hit in 2006 fourth quarter

The U.S. online gambling ban continues to wreak havoc on the poker industry, sending bwin Interactive Entertainment's 2006 finances into a massive backslide from the previous year.

The sportsbook and poker room operator generated an after-tax loss of €539.6 million compared to a profit of €6.4 million in 2005, according to its fourth quarter results released Thursday.

The loss stems from the unfriendly Unlawful Internet Gambling Enforcement Act passed by the U.S. during the year's final quarter, as well as significant restructuring costs.

To make matters worse, resistance from European gambling monopolies and regulatory changes in Turkey also pounded bwin's bottom line and resulted in the company's temporary withdrawal from the country in the first quarter of 2007.

Another consequence of the changing market is bwin's renewed concentration on its core business - sports betting and poker - in established markets in Europe.

Nonetheless, gross gaming revenues were up 165.2% to €381.8 million given the addition of 1.3 million new real-money customers to its client base.

A complete report of the fourth quarter and 2006 financial year can be found online at www.bwin.ag.

courtesy of Erin Warner

News Added: 22 April, 2007

Number of views : 688

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