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.