US Ban Continues to Affect Party Gaming Poker

July 10 - When the Gibraltar-based online casino and poker operator, Party Gaming, pulled out of the United States gambling market in 2006 following the Unlawful Internet Gambling Enforcement Act, the company lost a significant part of its market. In particular, Party Gaming's poker arm, Party Poker was affected with the loss of most of its US players.

In a statement this week, Party Gaming admitted that tough competition among other big poker sites in industry, especially those that continued to deal with North American players, was partially to blame for its less-than-average financial performance that was released on Monday.

"Strong competition - particularly from poker sites that continue to accept US players - has led to an increase in bonuses and costs associated with some of our poker tournaments," read the statement.

As a result of the tougher competition, Party Poker is struggling to match bonuses and prize money in its famous tournaments. Its rival companies, especially those that operate in the European market, clearly have the upper hand in the situation.

The US Department of Justice has turned a blind eye to poker sites such as Full Tilt or Poker Stars who still cater to US players, simply because they have no assets in the United States, unlike most poker sites like Party Poker.

US players are believed to make up half the poker industry's entire customer base, despite the tighter controls implemented since the UIGEA came into effect.

In the meantime, Party Poker is still struggling to make an impact in an already tight European market, where it was forced to turn its attentions to in 2006. Its competitors who continue to accept US players, manage without difficulty to get their share of the "sharks" in the industry - those top, top players who generate 3/4 of the revenue in the industry and make up only 10% of the entire world player base.