888 Profits Down, Outlook Up

Online gambling firm and operator of Pacific Poker, 888.com, announced a sharp drop in first half earnings Monday, but expressed optimism for the rest of the year. 

As a result of the Unlawful Internet Gambling Enforcement Act (UIGEA), signed into law by George W. Bush last October, 888 lost 55 percent of its revenue and 60 percent of its customers when it voluntarily banned all U.S. residents from playing on its site.  The financial effect was severe.  For the first half of 2007, 888 saw its net income fall to £13.5 million, down from £42.7 million for the same period a year ago. 

The company said, however, that the second half is looking good so far.  July brought record customer turnover, which is very promising, as it is typically a slow month.   

888 has also announced a partnership with Tower Torneos, one of Latin America’s most popular poker brands in which 888 will provide the backbone for Tower’s online gambling offerings.