27-02-2007 VIP.com axes 84 jobs

Chief Executive Alistair Assheton told the online version of Amigoe that VIP had to downsize as it lost a great part of its business following the introduction of new legislation against internet gambling in the United States.

VIP.com announced yesterday that it was no longer accepting new customers from the United States and new deposits from Canadian players effective immediately.

Speaking to Gambling911, Alistair Assheton commented: "We’ve taken the steps to close down telephone betting, a largely unprofitable business for us representing 2.5% of our business, and yet 20% of our staff."

"We’ve also turned our business towards our existing player base, and are stopping new registrations from the USA and Canada – both in an effort to ensure we can continue to offer a high quality service to our existing players."

"Many players have been with us for many years, and we intend to be able to continue serving them for many years to come. We’ve taken the choice to allocate more of our resources to them, and to stop taking US and Canadian new accounts while the legal uncertainty rages on. We intend to carry on with business and to give our customers everything they have come to expect from us."

Elsewhere, Bingo.com announced its fourt quarter results showing an 88 per cent decrease in revenues down to $103,630 from $833,543 in the third quarter of 2006. "The fourth quarter of 2006 presented many challenges for Bingo.com," said CEO Tarrnie Williams. "With the passing of the United States Unlawful Internet Gambling Enforcement Act, the Company was left with no choice but to halt its gaming operations and sell its entire United States gaming business to an unrelated third party. This regulatory change significantly impacted Bingo.com's revenue and therefore its profitability in both this and the first quarter of 2007. In response to this situation, the Company has accelerated its plans to expand its online gaming business in regulated countries throughout the world and expects to complete its preparations for the launch of its online bingo games in the United Kingdom in March 2007, and into other regulated markets later in 2007."