PartyGaming has reported a pre-tax loss of US$32 million in the six months to 30 June 2007, demonstrating the impact the withdrawal from the US market last year has had on the company. Bodog, forced out of Costa Rica to now operate from Antigua, appears to have lost its domain name. Online gambling companies are reaping the consequences of the continuing US war against them.

PartyGaming Plc emphasises that the first half of 2007 has delivered solid performance for the company, with ‘excellent top line growth and new player sign-ups.’ Continuing revenue is up 42% to US$212.5 million, reflecting strong growth in Europe, the Middle East and Africa. Trading since 30 June 2007 has been in line with management expectations with gross revenue averaging US$1.4 million per day.

Mitch Garber, PartyGaming CEO, said, “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 company is in talks with the US authorities, trying to avoid prosecution for taking bets from US citizens before the Unlawful Internet Gambling Enforcement Act was signed last year. The approach to the Department of Justice was voluntary and the company is hoping the talks will reach a satisfactory conclusion. The reported first half earnings were in line with previously lowered expectations and PartyGaming shares rose 3.3%.

The loss of the bodog.com domain could prove expensive for Bodog. A US$48.6 million default judgement against the company has been obtained by a Las Vegas company in a patent infringement lawsuit filed in Nevada District Court. The gambling website is now inoperative, although Bodog quickly opened a new website www.newbodog.com for existing clients. The loss of bodog.com will impact heavily on signing up new customers, as the gambling operator will lose its favourable position in search engines.

1st Technology LLC of Las Vegas obtained the judgment after the Bodog companies failed to answer allegations that downloaded software used by Bodog customers to facilitate its gaming activities infringed upon 1st Technology's patents. Calvin Ayre, the Bodog founder, has said that the dispute is over the ownership of the domain name and that they will fight the judgement. (E-08.29.07)

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