888 in talks with Trump Entertainment
Deal could see 888 run B2C venture through 888.com and Pacific Poker brands.
888 Holdings is in talks with Trump Entertainment Resorts and a number of other unnamed casino groups to increase its B2B clients and launch its own online poker brands ahead of a regulated US market.
Any such deal, that remains in early discussions, would see London-listed 888 offer its software and B2B services for Donald Trump’s Atlantic City-based casino brand, mirroring the agreement with Caesar Interactive Entertainment in Nevada. Trump Entertainment Resorts owns two casinos in Atlantic City, boasting 6,600 slot machines and around 350 gaming tables.
However, according to a spokesman, depending on the type of deal struck 888 is also looking to “find a route to market” for its own brands that include Pacific and 888 Poker.
A spokesman for 888 Holdings told eGaming Review this morning: “With a unique position in the US, able to launch a real money offering immediately as either federal or state based regulation is finalised and upon licensing by gaming authorities, we are unsurprisingly in discussions with a number of relevant partners regarding the opportunities that may become available in this exciting market.”
The B2B partnership would supplement its software licensing agreement with Caesars Interactive to supply poker software for the US market. The original agreement only covered the UK, but was extended to the US at the beginning of last month to allow Caesars to launch real-money poker products as soon as intrastate or federal regulation is passed.
The deal is non-exclusive, meaning that 888’s B2B arm Dragonfish will be able to sign and supplement this agreement with other US customers ahead of the market opening.
In an interview with eGR Magazine last week, newly appointed 888 Holdings CEO Brian Mattingley (picture) said the company was “on track” to bring its online poker to market in the US. “But until such a time was when we have thrashed out all the issues and we have signed the deal I’m in no hurry,” he said.
The gaming company is currently in demand in the US, in part down to the Nevada Gaming Commission finding its commercial relationship with Caesars Interactive Entertainment “suitable” in March 2010.
It is thought any intrastate or federal regulation will look kindly on companies which are already licensed in Nevada, due to its stringent licensing laws. 888 is also in the current application process to obtain a service provider licence in Nevada.
“We have got more people chasing us in the States, it’s becoming embarrassing. This one is important for us and I’m very, very sure we’ll do the deal. But if it doesn’t work, there’s other people out there,” added Mattingley.
It is believed a large portion of the investment will be provided by New York fund manager Marc Lasry’s Avenue Capital Group, which announced in a regulatory filing in October last year that it was to form an internet gaming joint venture with Trump Entertainment Resorts. Trump Entertainment owns 10% of the JV, in return for contributing the property mogul’s name to its operations.
Trump’s daughter, Ivanka, told Bloomberg at the time that the joint venture was “positioning itself” to be the largest online gaming company if the industry is legalised in the US.
“In terms of the internet, brand is essential toward attracting players. The Trump brand would be the most powerful one in this space,” she said.