Currently, the United States does not support online gambling and a company called 888 Holdings Plc is betting that it will in the near future. 888 struck a deal with Harrah’s, the world’s largest casino company to get its foot in the door in the US online gambling future.
888 Holdings, Plc is the United Kingdom’s second largest online gambling enterprise. They entered into a multimillion dollar deal with Harrah’s in which they will provide poker and casino services to the Casino giant. It hopes that online gambling will soon be legalized in the US and when it does they will be ready to cash in. Harrah’s has already started to lobby the US Congress to allow licensed operators to allow online wagers as credit card companies were banned from collecting payments from online gambling sites in 2006 in the Unlawful Internet Gambling Enforcement Act. Once that happened 888 pulled out of the US and concentrated on its United Kingdom’s ventures. This was a real disappointment to the company as half of its revenue came from players in the United States. The company is worth about $562.6 million this year.
The deal with Harrah’s allows 888′s Dragonfish, its business to business unit, to offer services and provide payment software for Harrah’s World Series of Poker and Caesars Casino in the United Kingdom. It is ready to pounce now that the 2006 Act is under threat to be repealed in both the United States House and Senate. The only snag in the deal is that bills that are being submitted to the House and Senate contain provisions that limit licenses to casinos that pay taxes to American government. That would kill 888′s ambition since it is a foreign operator. 888 and Dragonfish are banking on the chance that the provision may be stricken from the bill and that will open the door for 888 to be the first to offer services to United States interests.
888 Holdings Plc’s mission states that its aim is to be the market leader in global online gaming. Casino-on-Net started in 1997 and over 25 million people have taken advantage of the online gaming venue. They also support Pacific Poker where poker enthusiasts can play any time of the day or night.
The headquarters are located in Gibraltar and owns Cassava Enterprises (Gibraltar) Limited. They have offices around the world and employ 880 full time staff members.
888 was permitted to trade on the London Stock Exchange in September of 2005. The company develops software to be used in online gambling venues. It also offers back office payment processing, risk management, and customer service.
Some opponents of online casino’s in the United States state that it will be the final demise of the Las Vegas style industry since people can gamble in the comfort of their own homes, however others say that customers will still be attracted to the glitz and glamour of the Las Vegas casino scene, especially if the economy starts to recover.
888 officials say that the deal with Harrah’s will be magnificent if the US market opens up online gaming, but it is still a good deal even if they can operate only in Europe. Harrah’s decided to go with 888 because of their exceptional technology and commitment to responsible gaming.
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