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Once the most popular online gambling company in the world, 888 Holdings
has shown mixed results recently. The casino gambling company posted a 25%
increase in revenues for the first quarter (Q1) of 2012, yet the stock is
sliding, after the company found some resistance in their aim to expand their
market back in USA. Originally, the 888 Holdings were forced out of the
USA online gambling market, following some legal debacles with the local
authorities, through their main casino website 888.com which was viewed as
illegal, according to the US government. The company left the American online
gambling scene in 2006 and has ever since contemplated a return to the lucrative
casino market the U.S. offers.
888 Holdings made an attempt to re-enter the USA gambling market
through the state of Nevada, where forms of gambling such as casinos and
sportsbooks are legal (in their land-based form), via purchase of an established
gambling company already operating in Nevada. However, the licensing of 888
Holdings to operate land-based gambling establishment was questioned by the
local gambling commission, based on the previous online casino operations of the
UK-based company. It appears that 888 Holdings is abandoning the plans to
re-enter the USA for now, which has driven down their stock on the London Stock
Exchange. Many investor were hopeful and looking forward the increased revenues
the US gambling market would've offered to the UK online gambling giant.
Meanwhile 888 Holdings posted a great 2012 Q1, helping its stock to
avoid a huge loss at the UK's stock exchange. Revenue for the UK casino company
was up 25% to £58.2m, driven mostly by increase of new poker players (88% YTY),
while the casino and betting customers saw decrease by 24% YTY. |