American Wagering Inc. suffers major decline in revenues

Jun 16, 2009 5:02 PM
Earnings by Ray Poirier | A poor economy and changes in bettor’s wagering habits caused a major decline in revenues for American Wagering Inc. (BETM) during the three months that ended on April 30.

Revenues fell from last year’s $4.2 million to $3.3 million. However, due to reduction and operating costs, including the elimination of some positions in each operating division, the company showed a profit before income taxes of $36,509. Last year, the profit for the comparable period was $52,335.

Still facing the company is the recent court indication that would force the company to pay a $1.7 million judgment immediately rather than through a payment schedule. The final court ruling is awaited.

 The quarterly filing noted the gamblers have become more conservative in their betting style.

"We have also experienced a change in gambling patterns of our patrons, including a trend toward more conservative bets, which tend to be less profitable to the company," the company wrote in its filing.