Online gambling company's shares rise after deal with Harrah’s
The online gambling company, 888 Holdings Plc, saw their shares rise after signing a contract with Harrah’s Entertainment Inc. 888’s shares rose the most in London’s stock market since may, the deal that they have signed is to provide online services to a unit of Harrah’s group, thus it could be the way of a potential re-admission into the US market. 888, is the second largest online gambling company and is UK listed, saw their market price increase as much as 14 percent.
Dragonfish, 888’s b2b division, will be the one providing online poker and online casino services to the Harrah’s in what will be a multimillion dollar deal. Harrah’s, the biggest casino company in the world, has been lobbying the US Congress to consent to already licensed gambling operators in the US to take online stakes from US residents. 888 have seen this as an opportunity to acquire an earlier foothold in the US market if online gambling is legalised in the States.
All online gambling operations was banned within the US after the US Congress passed the UIGEA, the act stopped credit card companies from sending and collecting payments to online gambling companies. All of the major players in the industry pulled out of the US at this time including 888, they then found that half of their revenue came from US clients.
It looks like 888 will also offer Harrah’s World Series of Poker and Caesars Casino brands their support services in gaming and payment software within the UK. 888 are also discussing business contracts with other US companies, and they are not in the casino industry. They are also looking to make an acquisition for the business unit in the near future.