Gigi Levy: Harrah's deal 'hugely positive' for 888 in US
888'S deal with US casino giant Harrah's "will have a huge positive impact" on the company's ability to operate in the US should online gaming be legalised, 888 chief executive Gigi Levy has told eGaming Review.
888’S DEAL WITH US casino giant Harrah’s “will have a huge positive impact” on the company’s ability to operate in the US should online gaming be legalised, 888 chief executive Gigi Levy has told eGaming Review.
As reported on EGRmagazine.com earlier, 888 business-to-business arm Dragonfish signed a deal with Harrah’s Interactive Entertainment (HIE), the new online division of US casino giant Harrah’s, to supply back-end support to a suite of Harrah’s flagship online poker and casino brands the World Series of Poker and Caesars aimed at online gamblers outside the US, where egaming is illegal under America’s Unlawful Internet Gambling Enforcement Act (UIGEA).
Speaking to EGRmagazine.com, Levy said: “The partnership with HIE will have a huge positive impact if the US market opens. It clearly positions us as a provider in the field to these companies which are set to be approved by the relevant authorities. If people thought we weren’t well positioned [to work in the US], this development clearly shows that we are.”
Unlike rival PartyGaming, which in April reached a $105m settlement with the US authorities for its activity offering online gambling to Americans prior to UIGEA, 888 has not reached any settlement in the US, and Levy recently expressed doubts that the US would open to non-American operators if it does legalise online gambling.
However, last month Levy denied analyst speculation that a special dividend to investors indicated that 888 is not preparing a ‘war chest’ of funds with which to pay the American authorities.
The deal with HIE will see Dragonfish roll out HIE’s poker and casino brands in the UK, 888’s main market. However Levy said the move would not run the risk of cannibalising or duplicating 888’s player base.
“If anything, it will be material to poker liquidity and HIE will address a different target market from us, and has different plans in terms of marketing. The potential upside outweighs by far any downside there could be.”
For more on this issue, see our August feature on US egaming liberalisation or 888 “ Happily Unsettled Month End comment.
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