Should I be Buying Shares in 888 Holdings?

We don’t usually cover share prices in this blog, but with the recent news announcing the legalisation of online gambling in Nevada, New Jersey and Delaware, there has been a flurry of speculation about how the burgeoning US market could affect the online gaming industry around the world – specifically with regards to poker. With the subsequent announcement that 888 Holdings has partnered up with an investment group, Avenue Capital, to launch the All American Poker Network (AAPN) (read more about that here), initially operating from Treasure Island Casino in Las Vegas, all UK eyes are on two things – the poker traffic and the share price.

888 Holdings – Poker Traffic and Share Price 

888 Poker currently ranks fifth on the PokerScout.com online traffic report, with an average of 2,450 real money ring game players over the last seven days. 888 reported in April 2012 that their poker revenue had increased from $11 million to $21 million in the first quarter like for like periods, and that their poker platform saw a whopping 83% increase in traffic from 2011-12.

Certainly, there is every chance we could see them becoming an even more formidable force, if their real money hands increased to such a level they could catapult into the Top Three. The iPoker Network, currently in fourth place with 3,200 games on average and PartyPoker, with 3,300, are separated by a hairs’ breadth, and it wouldn’t take much of an increase from US traffic to see 888 overtake these two brands.

Interestingly enough, Full Tilt are holding onto second place behind industry giant PokerStars by just 50 hands more than Party Poker (3,350). It is unlikely that Full Tilt will be allowed back into the US online poker market after the events of Black Friday (read more about what happened here), so their current level of traffic is unlikely to increase with the new legislation.

All this is good news for online poker sites like 888, who are new to the USA and are establishing formidable partnerships with key US casino operators, as it means there is an untapped market of old Full Tilt players just waiting to play again.

888 Holdings as a whole is benefiting from the potential of this sunny outlook. Share prices reached a record high on 7th March 2013, after the announcement of the legalisation of online poker in Nevada and New Jersey, topping 183.31. This is an increase of a massive 207.41% in the last year – a phenomenal increase.


You can see a screenshot of the Share Summary below, just to give you an idea of which way the line is going!:

All this, and the first US hand has not even been dealt yet? It sure looks like a good time to invest in 888 Holdings. Lets just hope the US poker market doesnt turn out to be a damp squib, as some analysts are prophesising.

BREAKING NEWS - 888 Launch First Real Money Casino on Facebook

888 Holdings have announced the launch of their first ever real money casino app on Facebook, named MAGIC888. This launch follows the launch of their real money bingo offering, BingoAppy in December 2012, introduced to compete with the successful Zynga Bingo, which has over 1 million active monthly users. MAGIC888 allows players to have all the fun of the 888 Casino through their favourite social networking platform.

The new casino app will be competing with the likes of Bonza Slots, which was introduced by Bonza Gaming (an alliance between Sportingbet and Plumbee) in the start of February 2013. Bonza Slots has already attracted over 10,000 active monthly users, and 888’s casino will undoubtedly be going head to head with this brand, aiming to spread their own in house slots and table games and Live Casino to a wider audience.

This is the second real money social gaming app released by 888 Holdings since they announced that they had entered into an agreement with Facebook to supply real money gaming products last December. The first app, BingoAppy, which was released shortly afterwards, currently has 10,000 monthly active users, which, when compared with the mighty Bingo Blitz or Zynga Bingo with a million apiece may seem low, but is impressive given the short timescale.

Currently, MAGIC888, has just 100 active users after less than one day from its launch, (according to Facebook) so we look forward to checking in with the app to see how that number had increased in another week. You can read more about the App itself in a review here.

BREAKING NEWS - Alea Leeds Closes and Withdraws Super Casino Bid

It has just been confirmed that Alea Casino in Leeds has been closed down with immediate effect. As well as closing down their flagship Leeds casino on Clarence Dock, Alea have also removed their bid for the Leeds Super Casino license, leaving just Leeds United and Global Gaming in the pipeline now.

For more on this, visit the Alea Leeds Closes news item on Gamble.co.uk.

With this being the second high profile to announce its closure within a week after Genting Casino announced the "consolidation" of their Derby site (see the blog post below), what do these announcements means for the land based casino industry? Are we going to see online and mobile gambling dominate the casino industry, despite the plans for super casinos?

Leave us your comments below.

Genting To Close Derby Casino

Genting Casinos have announced the closure of one of their land based casinos in Derby. The Malaysian giant, who owns 35 land based casinos across the UK under the brands Genting Club and Genting Casino, currently has two land based casinos in the city – the oldest and the one under threat, Genting Casino Friargate, and the newer Genting Club Riverlights, which opened in 2011. Genting have announced plans to “consolidate” their Derby operations, and intend to offer the 41 staff a position at Riverlights instead.

This is interesting given that Genting have a history of closing older casinos upon the opening or purchase and re-brand of newer sites. This has previously happened in Leicester, when the Electric Circus site was closed in June 2011 after the takeover of the newer ex-Mint casino location, and this current news from Derby is likely to have current Genting employees in Birmingham quaking in their boots after the recent Super Casino announcement.

Whether Genting will choose to “consolidate” their Birmingham casino interests will undoubtedly be of concern to current employees, as there are currently three city centre Genting Casino and Clubs in the centre of the city. With the plans in place to build the new Super Casino complex, it would look likely that one or more of the existing Genting Casinos may be the victims of the new build. Despite Genting’s insistence that they do their best to re-house their employees in other sites, in larger cities where transport is more of a problem this is not always practically possible.

If you’d like to read more about Genting Casinos, you can read a review of Genting Online here.

William Hill’s Buyout of Playtech Confirmed Today

The buyout deal between William Hill and Playtech has been confirmed, at a cost of £424 million. The deal will see Playtech relieved of its 29% share in William Hill Online, and will see William Hill complete its second major acquisition in less than three months, after it announced the purchase of Australian Sportingbet back in December. The move will mark a major turning point in the history of the bookmaker, as they not only take full control of their online interests but also continue their spread into other international betting markets.

Around £375 million towards the buyout will be raised by a fully underwritten Rights Issue, at the rate of two shares to every nine existing shares (equating to 245p per share), and another £50 million will be raised from the 2012 Bridge Credit Facility. According to a press release given by William Hill CEO Ralph Topping, he is confident with the terms, and “pleased with the indications of support from shareholders”, and has declared the Rights Issue is the most “appropriate” way to raise the funds.

Playtech are also happy with the proposed deal, despite initial worries that the acquisition of Sportingbet would cause tension between the parties. The end of this relationship, which begun four years ago at an estimated cost of £250 million under previous Playtech majority shareholder Teddy Sagi, will see Playtech bag a healthy profit for the start of 2013.

Playtech saw their gross income increase by a whopping 51% in 2012 thanks to their increased profits which came from their William Hill interest, yet current Chief Executive Mor Weizer is confident the move is coming at the right time, and that the Board “looks forward to 2013 with confidence.”

All is good for Will Hill however, as the buyout annoucement has seen William Hill's shares shoot up by +25 points today. Track them here.