New US laws prompted 888 Holdings to expand elsewhere

In a trading update, it revealed that net gaming revenue for the 12 months to 31 December reached $290m (£148m) compared with $271m the year before.

Gibraltar-based 888 said it was diversifying geographically in the wake of a US law late last year which effectively banned internet betting.

The firm said last month saw record turnover for non-US operations

But it added that the number of new depositors was down since October.

Non-US market

For many gaming firms the US had been a vital source of revenue but since the new legislation came into force in October, online gambling companies have been seeking to gain revenue elsewhere.

Revenue from non-U.S. operations rose 28% to $157 million. However, after suspension of 888's US business in October 2006 average daily first time depositors fell by some 37%.

"Following our exit from the US market in the fourth quarter of 2006, the company has worked hard to continue expanding its non-US business," 888 said in its update.

Recent developments include launching a new real-money casino in February this year.

In broadening its scope, the firm got a betting licence in Italy in December as well as starting a casino website using Spanish and German.

After the new US legislation was introduced, there were talks between the firm and Ladbrokes over joining together.