22-03-2007 Betshop announces 2006 results

On a like-for-like basis, Betshop's hybrid business model, which combines an online service and a land-based franchise network in Italy, reported a 247% growth in turnover to $116.7m and a 187% rise in net win to $27.4m, while active customers tripled to 44,750.

Betshop's parent company Leisure & Gaming retained a loss of $104.5m following the sale of its US facing operations for the nominal sum of $1 ahead of the signing into US law of the Unlawful Internet Gambling Enforcement Act.

Chief Executive Henry Birch commented: "2006 was a challenging year for L&G and the online gaming sector.  Disposing of our US-facing assets dramatically impacted our business, but having successfully restructured our operations we are now well-positioned to capitalise on growth opportunities throughout Europe, particularly Betshop Italia's leading position in the Italian sports betting market."

Betshop is continuing with its geographic expansion plans withe the developmemnt on the Romanian market of a franchise network of betting shops similar to those operated by Betshop Italia. The company has also started diversifying its product offering with the launch of poker on the Betshop.com platform.

"Our business model, combining online operations with a land-based franchise network, allows us to enter new markets and grow rapidly with minimal capital outlay. The recent ECJ judgment in the Placanica case is encouraging for L&G, as it implies that further European betting markets will be forced to open up and liberalise," added Birch.