UPDATE 1-888 Q1 net gaming revenue rises 38 pct

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LONDON, May 7 (Reuters) - Online gaming firm 888 (888.L: Quote, Profile, Research) said on Wednesday the first quarter of 2008 started well with a 38 percent rise in net gaming revenue and growth has continued into the second quarter, driven mainly by casino and bingo games.

It said net gaming revenue, a key performance indicator, rose to $64 million from $47 million in the same period of 2007 and was up 3 percent on the previous quarter.

Last month, Chief Executive Gigi Levy said he hoped the company would achieve 30 percent revenue growth for the full year, helped by its new sports betting and bingo sites.

Online poker and casino firms have been gradually rebuilding their businesses after the U.S. closed off the world's biggest market in 2006 with a ban on gambling-related banking transactions.

The move wiped billions of dollars off the value of online gaming stocks virtually overnight and led to a number of founders and online executives being prosecuted for taking illegal bets.

"Our various business initiatives are progressing well and we are therefore confident in delivering future growth during 2008," Levy said in a trading statement on Wednesday.

Total operating income rose 41 percent to $66 million from $47 million a year earlier.

Its shares lost 1.26 percent in early trade to 157 pence. (Reporting by Erica Billingham; editing by Rory Channing)