PartyGaming launches marketing push on back of US asset freeze

PartyGaming has ramped up its marketing spend to capitalise on the US authorities’ squeeze on the payment channels of US-facing poker sites PokerStars and Full Tilt.

The company made the announcement in a second-quarter trading update which revealed group revenue since April 6 remains in line with that achieved in the first quarter, despite the onset of the regular summer downswing in online gaming activity.

The marketing push on the back of US authorities’ seizure of player winnings from US-facing poker sites including Poker Stars and Full Tilt has already positively impacted player numbers in several territories, the company said.

PartyGaming said increased distribution costs associated with the initiative would be offset by continued cost savings and favourable currency movements, with full-year results expected to be in line with those achieved for 2008.

PartyGaming chief executive Jim Ryan said: “The Group’s strategy remains on track and I am pleased that many of the seeds we have sown over the past year are now beginning to bear fruit.”

PartyCasino was the group’s strongest performing vertical over the quarter, turning in double-digit revenue growth due to a substantial increase in games offered on the platform and the launch last month of a dedicated affiliate programme and international marketing campaign.

PartyPoker revenues, however, dipped below first-quarter levels due to a reduction in active player days due to seasonality, continued competition from US-facing poker sites, and lower yields due to increased bonus and player loyalty costs.

PartyPoker's online poker tournament service in Italy for land-based lottery services provider Intralot has also gone live. Party said it expects to be offering poker cash games on its newly launched Italian poker network by the end of 2009.

Source: eGaming Review

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