888, Ladbrokes Deal May be Off

For the last few months, reports have been that a takeover of online gaming firm 888 Holdings by Ladbrokes was all but a done deal. Now, not so much.

London’s Sunday Telegraph has reported that the possibility, however real it may or may not be, of 888 running into legal problems with the U.S. over past trading in the country has become an obstacle in negotiations. Both 888 and Ladbrokes say discussions are still “ongoing.”

Last week, 888’s former CEO, John Anderson, along with other online gaming VIP’s, was questioned by French authorities. Sources say that this, along with recent subpoenas issued by the U.S. DOJ to investment banks who had dealings with online gaming firms, has led Ladbrokes to request indemnity if it should acquire 888 Holdings, only to have the U.S. come after it.

It should be noted that 888 Holdings shut out U.S. customers after the UIGEA was passed in October.

Originally published 3:02 PM Monday, March 05, 2007