Playtech has Recovered

Third quarter results are in, and for some online casino companies, the Q3 results show a steady but uphill battle to reclaim profits after exiting the U.S. internet gambling market. Many companies have looked to Europe, Asia, and other growing markets as a way to recoup profits and find burgeoning online casinos markets – and several of the prominent industry related companies have reported steady growth in the new markets. Playtech, though, has announced more than just steady growth – the company’s Q3 report was enough to make even the most reserved investors do a little tap dance. Playtech is a prominent online casinos gambling turnkey provider, and like many of the top players, Playtech had a corner of the U.S. market, so with the U.S. internet gambling ban, the company lost a major portion of its anticipated revenue. And like many of the online casino companies looking to new markets, Playtech has focused energy on cornering the emerging Asian market. Though Asia has yet to truly embrace online casinos, the market is slowly growing. And beyond the Asian market, the European market has similarly experienced a huge surge in online casino gambling activities though for a different reason. In September the 2005 Gambling Act came into effect. And with the new Act, the EU took a major step into more liberal online casinos gambling activities. All of these simultaneous expansions in the internet gambling industry meant that many of the prominent e-gaming companies had a new markets ready for the influx of companies after the U.S. ban. October 2007 showed record revenues for Playtech and beyond that, the company has reported significant month on month growth. The fact that Playtech only continues to build with new licenses in new markets means that predictions of continued growth in both revenue and players is looked at as a valid claim by most online casinos industry analysts.

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