Online Casino on a Losing Streak

Shares in Austrian online gaming firm Bwin, a company with online sportsbetting, casino and poker interests, have been demoted from 'hold' to 'sell' with the target price also slashed from €23 to €15 by analyst Alfred Reisenberger of CAIB Research.

The analyst argues in a research note published this week, that the company's second quarter results reinforce the fact that business is unsteady.

Due to a small dip in gross gaming revenues in 2007 and a increase in personnel expenses, CAIB Research also forecasts that the company will see losses in 2007-2008.

Even though Bwin's net income for the half-year ending on June 30 rose to €4.3 million, compared to net losses of €27.1 million in the same period last year, Reisenberger does not believe this growth to be significant enough.