888 Holdings Posts Strong Gains

888 Holdings, owner of Pacific Poker, Casino-On-Net, and Reef Club casino, reported a 59 percent increase in 2005 profit this week. The $65 million net profit was largely a result of increased success with 888’s poker room.

888’s share price rose very slightly, to 180p, after dipping early because of the advancement of legislation aimed at stopping online poker in the United States. The legislation, which was passed by a Congressional committee Wednesday, would outlaw online gaming companies from accepting payments from credit cards, banks, or electronic funds transfers, essentially shutting out all but the most die-hard of American online poker players.

John Anderson, 888 Holdings CEO, did not seem to worried about the political wranglings.

“I feel quite confident that we'll get the same results as we have for the last six years and that it won't get through to the next stages,” he said.

Analyst Wayne Brown from Altium Securities also believes the bill will eventually die, although he sees online gaming stocks being a bit rocky in the near-term as things play out in the US.

Nevertheless, 888 is looking to broaden its international horizons to decrease its reliance on US customers. One goal is to announce the acquisition of a non-US based online sportsbook within the next six months.

Originally published March 16, 2006