Austrian gambling site bwin has announced that the introduction of the US Unlawful Internet Gambling Enforcement Act in 2006 has majorly crippled its profits.
After reporting profits of 6.4 million euros in 2005, bwin lost 539.6 million last year. Trading was damaged after legislation outlawed American banks from accepting transfers to and from online gambling sites.
The Vienna-based betting company said that the act in the States was largely to blame for its losses. A statement about the US market read: "bwin took an impairment charge of 515.1 million euros due to the non-cash depreciation of the customer base and goodwill as a result of the bwin Games acquisition."
bwin said that "increased resistance" by gambling monopolies in some European countries had also taken a toll on proceedings. Turkey's ban on independent gaming sites cost bwin an additional 1.6 million euros.
The company has confirmed that in future it will focus on expanding its sports betting and poker businesses in countries where they are firmly established. It has acquired a betting licence in EU outsider Argentina, which will soon come into effect but its next large European promotion will be in football betting when the 2008 European Cup takes place in Austria and Switzerland.
Austrian gambling site bwin has announced that the introduction of the US Unlawful Internet Gambling Enforcement Act in 2006 has majorly crippled its profits.