March 4, 2002 12:40 PM PST

Playboy sees profit from Net gaming

Playboy Enterprises CEO Christie Hefner said Monday that the company's online gaming unit would generate profits this quarter as the company focuses on steering its loss-making Internet business into the black. At the FT New Media and Broadcasting Conference in London, Hefner reiterated that Playboy's online unit would turn its first-ever operating profit, compared with losses last year of $21.7 million in its Internet division.

Hefner said she expects analysts to judge the success of the adult entertainment company by its ability to achieve this, as well as the commitment to expand its domestic and international TV business. Playboy is looking to exploit the growing online gaming market, which Hefner estimated at $3 billion, particularly outside the United States where casino-style betting online is legal. Playboy has partnered with British bookmaker Ladbrokes on sports wagering and casino games, and Penn National Gaming in the United States on horse racing.

Story Copyright  © 2002 Reuters Limited.  All rights reserved.

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