Bingo: 888.com pays a price for US market withdrawal

888.com's financial results for 2007 show just how painful it was for online gaming operators to withdraw from the US gambling market with the implementation of UIGEA in late 2006.  A major online bingo games operator, 888.com said its profits had been hit by a 54% decline in 2007.

The Gibraltar-based company and second largest online gambling operator in the UK was forced to exit the US market due to UIGEA to avoid potential prosecution action by US authorities.  Many online bingo operators and online bingo halls followed suit in the wake of UIGEA.

888.com's net income fell to $34.2 million as opposed to $74.5 million in 2006.  It is estimated the company lost up to 55% of its sales after exiting the US market.

In the process of its move out of the US market, 888 has reduced jobs and purchased an bingo online operator.  It has also developed new partnerships with gaming companies including Blue Square.  

888 spent $32.4 million last year buying bingo operators that include Bingo Ballroom.

"There is a high likelihood we will make another acquisition in 2008,'' said CEO Levy in a recent interview with Bloomberg. "We are looking at a few companies.''