One year since the forced closure of its US gambling business, Aim-quoted Sportingbet has been given a lifeline with strong growth at its European sports betting arm.

The owner of Paradise Poker and Sportingodds.com lost three quarters of its business in October 2006 when the Unlawful Gambling Enforcement Act banned foreign operators from offering online gaming services in the US, forcing it to sell related interests for $1.

The one-off impact on its books resulted in a pre-tax loss of £311.6 million for the year to July 31 from a profit of £71.2 million a year earlier, as turnover dived 35% to £1.32 billion.

The company's fortunes now rest on its European sports betting arm, which helped to improve gross win – the amount wagered and lost by customers – by 48%.

Active customers are placing an average 106 bets per year, compared to 92 a year earlier.

The extent to which the US ban has hurt Sportingbet is evident in its share price performance. The stock is currently trading at 48.75p, nearly ten times lower than May 2006's high of 447.5p.

Analysts are upbeat about the company's prospects after Sportingbet described current trading as strong and 'significantly ahead of the prior year.'

Stockbroker Numis has forecast up to £11.7 million pre-tax profit before one-off items, although Sportingbet only produced £9.9 million gains. However, it likes the outlook for the business.

'Although the market this morning may be slightly disappointed that the group missed consensus forecasts we think the outlook statement should reassure,' said Numis analyst Richard Carter. 'And with the Q4 and Q1 peak trading quarters ahead we would expect positive sector news flow to support and drive Sportingbet shares higher.'