Pre-tax profits at PartyGaming fell 57 per cent in 2006 following the US government's decision to effectively ban online gambling.
The internet poker and casino group today revealed that full-year earnings were $138.9 million (£70.8 million), compared to $324.9 million (£165.6 million) in 2005.
Last October's unlawful internet gambling enforcement act made it illegal for gambling firms to collect payments in the US, with 888.com and Sportingbet among other companies suffering as a result.
But PartyGaming insists that today's results, which include reorganisation costs of $250.4 million (£127.6 million), "confirm the strength of the group's business model".
The claim is made on the back of figures showing revenue in operations outside of the US was up 112 per cent to $325 million (£165.5 million) in 2006.
"While the decision to stop accepting customers from the US was a bitter blow for our business, our continuing operations have grown strongly from the lows reached in November 2006, benefiting from the rapid reorganisation of our business and the acceleration of our efforts in international territories," said group chief executive officer Mitch Gaber.
"The addition of multi-lingual and multi-currency versions of our games should further increase their market potential. While regulatory uncertainty continues in some territories, our continuing operations are in excellent shape and we have made a solid start to 2007."
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