US Gambling Ban – the Cause of ESI Revenue Loss

ESI Entertainment Systems Inc made public that it was confronting with huge losses in its revenue for the last financial year. The company is the holder and operator of a popular online payment processor Citadel Commerce.

Canada-based ESI reported that in 2006 it lost $5 million in revenues. Officials of the company state that it was a direct result of the US online gambling when it closed its operations in the United States.

However, 2006 ESI revenues grow up with 19 per cent. In other words, the company earnings were about $22 million. Also, the gross profits of the company increased in 2006 with 41 per cent up to $13.5 million. More than $6 million was considered a big loss because of the US situation.

An ESI spokesperson was quoted as saying that the results are evident, despite the losses. Moreover, he declared that the company was trying to focus it efforts on expanding into other markets such as Europe to help replace its lost US customer base.

Main part of the ESI revenue is currently generated from Citadel, the online payment methods favored by online gamblers all over the world.