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Mar
3rd

Party Gaming and Rank Group Expanding Bingo Operations

Internet gambling company PartyGaming posted an income of compared with last year’s loss of 18.5 million Euros in 2009. The Gibraltar based company said that sales gained 15% to 357.3 million Euros. Party Gaming is planning on acquiring Bwin and is expected to close the deal March 31st. After the acquisition the company will be known as Bwin.party digital entertainment Plc. The move is expected to smooth the way for the company to enter European markets as they legalize and regulate online gambling. PartyGaming has been trying to add more poker and internet bingo businesses. Some of their poker operations have been pressures by poker sites that still accept American players.

The company says that internet bingo is growing rapidly and is expected to expand further in Europe. Numis analyst Ivor Jones joined three other analysts and stated, Ivor Jones. Bingo is growing and ready to roll out across Europe.” They also say that Party Gaming is a good investment opportunity. Recently the company invested 25 million Euros to enter the newly opened Italian and French internet gambling markets. Most industry observers expect Denmark to allow online gambling by the end of 2011 followed by Spain, Greece, the Netherlands and Germany. There are already many internet bingo sites targeting the Spanish bingo market. Casino sales rose 11 percent to 151.4 million Euros. Bingo revenues doubled to 52.5 million Euros last year. One industry report said that internet bingo was the driving force behind the expansion of the online gaming industry.

In the UK the Rank Group announced plans to spend £3 million pounds on bingo hall renovations in the UK. The land based bingo industry has experienced a rebound of sorts after years of economic troubles. The announcement by Rank comes as no surprise and the company plans to £2.7 million pounds in land based bingo halls in the North-West region of the UK. Rank Group owns and operates the well known Mecca bingo halls throughout the UK. Mecca bingo also has an extensive internet bingo operation dating from 2007 when many land based bingo companies opened internet bingo operations to stay profitable.

Internet bingo has become the most profitable sector of the online gaming industry. In the UK and Europe the income generated by internet bingo exceeds gambling income generated by poker and online slots. If most financial reports are correct it would appear that internet bingo companies are a solid opportunity for investors.