Austria based BWIN Interactive Gaming AG announced today a staggering net loss of $730 Million in 2006 largely in part to their acquisition of the OnGame network, a provider of poker network software to major players such as Pokerroom. The loss stems from a depreciation cost associated with the acquisition of Swedish OnGame and is attributed to the UIGEA which in turn caused the OnGame network to lose about 70% of its annual revenues which were derived from their US player base.

The majority of the loss was associated with increased marketing and legal costs incurred to BWIN due to the recent climate changes in the online poker industry. The company also took a $1.6 Million Euro charge from its Turkish business earlier this year when it temporarily withdrew its gaming operations from the Turkish market early in the first quarter of 2007.

The full year net loss of the company came to $539.6 Million Euro, however net revenues continued to increase in 2006 at $381.8 Million Euro up from $144 Million Euro in 2005. The severity of the American Pullout will most likely have its heaviest affect on revenues this year, however BWIN has implemented a cost saving program to help curb some of the impacts of this legislation.