PartyGaming Online Casinos Post Loss But Gain by US Settlement

PartyGaming's first-half financial statement shows the company losing money, but much of that is due to the massive settlement the online casino operator made with the US, a payment executives consider tantamount to an investment.

The official financial statement released by PartyGaming shows the online casino and poker operator lost about $67 million over the first half of the year. However, that news was tempered by the inclusion of a $101 million settlement with the US government to avoid prosecution of any alleged Internet gambling crimes US authorities may dream up.

The end to its ongoing battle with US investigators allows PartyGaming to look to expanding its markets without the ominous cloud of the US factoring into all company decisions. During a conference call with investors, PartyGaming executives said the company has $40 million available to acquire new assets in online casinos, poker, bingo, and sports betting markets.

“It opens the capital markets to us to enable us to pursue acquisitions we otherwise wouldn’t have been able to,” Chief Executive Jim Ryan said in reference to the US resolution.

Investors have flocked to PartyGaming as the company cleared its legal problems and prepared even for a potential return to the US market, if laws change as many experts predict. The value of PartyGaming stock has risen almost a third since the beginning of the year.

Ryan said Internet casino sales are increasing while poker holds steady, and predicted that the remainder of the year would see the company return to profitability and growth.