By Roger Blitz, Leisure Industries Correspondent
Published: March 5 2008 09:02 | Last updated: March 5 2008 17:29
PartyGaming chief to step down

Mitch Garber has cited family reasons for his decision to stand down as chief executive of PartyGaming but also hinted at tensions with the board.

Mr Garber will leave at the end of his contract with the online gambling company in May 2009. He will have completed three years in the job.

He said: “At the end of the day, we really feel we want to live back in North America.”

PartyGaming suffered the loss of three-quarters of its revenues when a US clampdown on online gambling forced its withdrawal from the lucrative US poker market 18 months ago.

Mr Garber, a former legal adviser to casino operators such as Hilton, Caesars and MGM Grand, said the rationalisation and rebuilding of PartyGaming round European markets had been “exhilarating and exhausting”, adding: “I think the job did change.”

He said his relationship with the board was good but that he rarely communicated with the founders, who include Ruth Parasol and Russ DeLeon.

He added that the attempt to broker a final settlement of outstanding US liabilities with the US Department of Justice had caused differences with the board.

He said: “Over the discussions with the DoJ, sometimes there could be tensions. I would never say otherwise”.

Mr Garber expected a settlement would be reached before the end of the year, adding that his departure was unconnected.

Like others in the sector, PartyGaming has found its US liabilities a barrier to consolidation.

PartyGaming said growth in net revenue in 2007 was lower than expected but it was confident about the full-year outlook.

In the year to December 31, pre-tax profits were $6.7m (£3.4m), compared with a loss last year of $77.4m.

Revenues on continuing operations rose 46 per cent to $476m ($325m) and earnings per share were 0.3 cents, compared with a 2.2 cents loss previously.

Casino revenues increased nearly threefold to $147m in the past year while revenues in sports betting more than doubled from $5.6m to $16.1m.

Poker revenues were up nearly 10 per cent at $295m.

The shares fell 2½p to 25p.

The Financial Times