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But online gambling pick up is starting to look a little brighter

888 Holdings, which earlier this month warned that its results may be disappointing  has had to scrap its interim dividend after the distractions of the football World Cup in June-July this year, together with a traditionally slow seasonal decline and the general economic malaise, impacted profits.

Pre-tax company profits plunged 44 percent to $8.4 million (GBP5.4 million) for the first half of the year, the company revealed in a statement this week.

First half revenues reached $130 million, 10.5 percent up on the same period last year, but marketing costs escalated by 19 percent to $47.5 million resulting in a 39 percent drop in H1 EBITDA to $12.6 million.

Results by operational activity showed that online bingo generated $23.5 million in H1 revenues, whilst online poker again presented a lack lustre performance, declining to $19.6 million. Online casino operations fared better, rising to $59.3 million from H1 2009's $55.9 million.

City financial media listed other sectors in the UK economy that felt the pressure of the World Cup including dance studios, home retail groups and entertainment venues like pubs, although sales of televisions and home delivered meals surged.

Some bookies have also reported good business from the Cup (see previous InfoPowa reports) - William Hill said the World Cup was “one of the best for bookmakers in 40 years”, as patriotic punters lost money backing England.

888 Management has reacted to the downturn by beginning a cost-cutting initiative to prevent further losses, although CEO Gigi Levy reported that it was not all gloom and doom, with online poker revenues picking up 15 percent as the second half of the year started.

The economies envisaged by management should result in a reduction in overhead of $6 million by the time the second half of the year ends, although the company was not specific about what would be axed or streamlined.

888's role in consolidation moves sweeping the industry remains unclear, with Levy again referring to the possibility in releasing the H1 results.

“We look at consolidation as one of the possible routes to realising our full value and feel that longer term this is the direction the industry will take. We have always stated that we will look into all relevant deals and expect the recent merger news to accelerate such discussions in the industry,” he reported.

He also warned that the regulated markets in France and Italy should not be viewed as generating overnight success, but as a longer term investment that would take time to deliver the full potential.

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Gambling News :

Yggdrasil Gaming Expanding - The Swedish online gambling games developer Yggdrasil Gaming is to establish a new parent company and expand its Stockholm office as it bolsters its presence in Sweden with a raft of new hires.

FanDuel and DraftKings Settle With NY Attorney General - Speculation earlier this week that daily fantasy sports market leaders FanDuel and DraftKings were about to agree a settlement on consumer fraud suits prepared by the New York AG was confirmed Tuesday when a $12 million settlement was announced.

Stan james Now Live With EPOS - The company switched to the Optima server less system across its entire estate in July after previously using Optima EPOS technology. The switch was completed early this (October) month and has already delivered noteworthy savings for the company.

Singapore Online Gambling Ban Begins - Singapore media reports indicated Tuesday that restricted online gambling services offered by the Singapore Pools have started online operations, whilst Singapore Turf Club will commence online betting activity on November 15.

Chinese police action against Crown Resorts Widens - In addition to the 18 Crown employees still held after their arrest last week, it now appears that the police questioned 87 Crown punters and junket organizers, detaining 10 of the latter.

Pennsylvania Online Gambling Updates - Pro-online gambling companies, including the Golden Nugget in New Jersey and Pokerstars, were quick to refute Schippers views based on their operational experience.

WSOPE In Czech Republic - World Series of Poker Europe 2017 has moved to King’s Casino Rozvadov (KCR) in the Czech Republic following a multi-year deal that will see KCR host numerous WSOP-branded events over the next several years.

Medialivecasino in Deal With Microgame - #Medialivecasino live dealer games have already gone live with Microgame joining content from other well-known providers NetEnt and Evolution Gaming.

BtoBet Partners with AfroBet - Following the launch in Kenya, Afrobet said it has high hopes for further expansion into East Africa, Tanzania, Uganda and Congo.

Pissed off Tabcorp shareholders - A significant number of Tabcorp shareholders, led by The Australian Shareholders Association, reportedly objected to proposed hikes in executive pay packages and were unhappy with the company plans for a merger with rival gambling group Tatts.

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