PartyGaming announced in its first half results that revenues fell to $212.5 million in the six months to the end of June 2007 after the effective shut-down of the industry in the United states in the fourth quarter of 2006. The ban has also hit pre-tax earnings, with the company making a first half loss of $47.1 million.

However, despite the substantial impact of the Unlawful Internet Gambling Enforcement Act (UIGEA) on the Group’s operations, PartyGaming said that its non-US facing business continued to grow strongly in the first half of 2007. The Group signed-up a record number of new players, and continued to diversify the geographic mix of active players.

On 4 June 2007, the Group announced that in light of recent actions taken by US law enforcement agencies following enactment of the UIGEA, it had initiated discussions with the United States Attorney’s Office for the Southern District of New York. The Group remains in the process of voluntarily responding to a request for information issued by that office. However, the company said that it remains too early to assess the likelihood of any particular outcome of these discussions.

Commenting on the results, Mitch Garber, PartyGaming CEO, stated that: “The Group has delivered a solid performance in the first half of 2007 with excellent top line growth and new player sign-ups. We continue to execute our strategy through growing our player base, localisation of the customer offer and broadening our product suite."

“Over the coming weeks and months we expect to announce a number of further important business alliances with leading companies around the world that will help us to promote and grow our business. While the important fourth quarter lies ahead, the Board remains confident about the Group’s prospects for the full year.”

The enactment in the United States of the UIGEA resulted in the immediate shut-down of all real money games to customers in the US last year, fundamentally changing the shape of the business, and forcing PartyGaming to restructure the company at a cost of $250 million. This has resulted in the company shedding about 800 jobs in India on the one hand, and the targeting of new acquisitions of non-US facing online gambling firms on the other.

In January 2007, PartyGaming completed the acquisition of Empire Online's (EOL) gaming business, and all of Intercontinental Online Gaming's business and assets. The company says it intends to continue on the acquisition trail to strengthen its non-US facing business.