Online poker and casino gaming site, Empire Online, recently announced a change in strategic policy following a recent online betting crackdown by several governments, which include France and the U.S. Upon closer analysis of six month fiscal earnings in 2006, as well as the current status of their daily account acquisitions the option to put a hold on their expansion plans, which included online acquisitions of several smaller online gaming companies, became a viable option. Considering the current volatility of the online casino gambling industry, Empire's Board decided it was in the company's and stock holder's best interest to do so.

Holding $260 million in assets - most of which were acquired as a result of the long fought battle with Party Gaming - Empire was apparently in an excellent position to allocate these assets into a growth investment strategy. However, the first six months of 2006 did not fare as well as management was expecting - bringing in net gambling revenues of $38.2 million. This was an $11.5 million drop from the same time period last year. If it were not for the totals brought in from Empire's online casino gambling revenue, the situation would have been very dire. Poker revenue was a meek $8 million through June, while casino revenue increased three times to a strong $30.2 million.

Now, Empire is reporting a weak 250 account sign-ups per day, which compared to other poker and casino sites, is a disappointing figure. The Board is now warning investors about a possible earnings growth decline, which if allowed to go unchecked could jeopardize future plans to expand and tap into recently chartered online gaming markets. With sign-ups down and Empire's target audience in the mix of legal uncertainty, the Board is playing their cards safe. As for the $5 million dividend Empire is holding, some investors are speculating the company's excess revenue will go back to them.