The announcement to the Australian Stock Exchange said the closure came after "a period of major regulatory change in the online gaming environment globally including significant changes related to payment transfers".
"We have flagged at our past two results presentations that a review of our online gaming operations would be conducted prior to the end of this financial year," said the chief executive officer of PBL, Peter Yates. "We have formed the view that the business will not break even this financial year and is now unlikely to achieve the scale necessary for this business to contribute meaningfully to the group's profitability."
The online gaming division, which began operations in January 2002, recorded an EBITDA loss of AU$5.6 million for the second half of 2002, which does not "contribute materially" to PBL's profitability, which is expected to be over AU$350 million for this financial year.
If Kerry Packer can not make $$$ out of gambling off shore then no one can, this is the guy who can turn 10 cents into $100.00, the government must have made the loop holes too small for this giant to get thru!!
Shame on the government and pity the poor PBL share holders