Harrah’s Chooses 888 for Online Poker and Gaming BrandsPopular U.K. Site’s Stock Soars on Day of Announcement |
|
888 — it’s a number and a company that all online poker players should start getting familiar with, because they will likely be seeing it much more in the years ahead.
Harrah’s Interactive Entertainment announced today that it has signed a long-term contract with 888 Holdings Plc (888 on the London Stock Exchange) to provide online gaming services, support services, and payment software to the World Series of Poker and Caesars Casino brands in the UK. Terms of the agreement were not immediately made public.
888 is the second-largest online gambling company in the UK It had served American players up until 2006, but it left the market and half of its customer base after the Unlawful Internet Gambling Enforcement Act was passed into law.
“This is a ground-breaking deal for 888 and demonstrates our ability to provide real value to globally renowned, land-based casinos and their leading brands,” said 888’s CEO Gigi Levy. The company’s stock rose 14 percent on Friday, the biggest jump for 888 since last December.
Mitch Garber, the former PartyGaming executive who was made Harrah’s Interactive Entertainment’s CEO in May, spoke highly of his new partner.
“As we develop and roll out our interactive strategy, we have chosen to work with 888, primarily for their world-class technology, scalability, and a strong commitment to compliance and responsible gaming,” said Garber.
It’s another significant step toward online gaming for the casino giant that owns and operates nearly 50 casinos worldwide. The company has lobbied for Rep. Barney Frank’s recent legislation, which would explicitly legalize and regulate the online poker industry, and it just created its interactive division earlier this year.
While this deal was established at least initially for the UK, 888 has begun investing in business-to-business services in preparation for a possible return to the United States.
“The real massive boost could be if Harrah’s partners with 888 in the U.S.,” James Hollins, an analyst at Daniel Stewart and Co. told Bloomberg News today.
Hollins also expressed surprise that Harrah’s chose to make a deal with a company that has not yet made a settlement with the Department of Justice concerning its past business with American customers, something PartyGaming did in April of this year.
However, with the proposed legislation in the House and the Senate, he believes that may not become an obstacle.
“The environment is not very clear for the need or visibility of signing such a deal,” said Levy.
888’s business-to-business unit, named Dragonfish, will support the launch of the WSOP and Caesars Casinos brands in the UK.
Copyright © 2001-2024
CardPlayer.com. All rights reserved.
