Tag Archives: Brian Mattingley

888 reveals US gaming joint venture

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CEO Brian Mattingley calls deal “final piece in the jigsaw” for US strategy

888 has entered into a joint venture agreement with investment firm Avenue Capital Group to offer a US-facing B2C gaming offering when regulation allows, while also officially confirming its deal with Las Vegas casino Treasure Island to offer poker in Nevada.


The newly formed, Delaware-incorporated company, called All American Poker Network (AAPN), will be used to launch 888’s gaming platform and brands into the US market, beginning in Nevada via a deal with Treasure Island which eGaming Review exclusively revealed last week.

888 already has an existing B2B agreement with Caesars Interactive Entertainment to supply software for a World Series of Poker-branded website in Nevada, and according to CEO Brian Mattingley, the JV with Avenue Capital now gives it the financial clout to push its B2C product as the rest of the US market opens up.

New York-based Avenue Capital Group has other interests in various terrestrial casinos and entertainment companies Mattingley said the JV deal was “perfect” for the Gibraltar-licensed operator as it provides the “ideal platform through which to launch our B2C brands into the US market, once regulated”.

“Our WSOP agreement with Caesars gives us an excellent B2B deal with one of the largest global gaming brands and most prominent casino operators, and we also have a strategic alliance with one of the largest gaming machine manufacturers in the world, WMS. We now have a significant financial partner for our leading B2C product – the final piece in the jigsaw, completing our US online strategy.

“The agreement sees a leading US financial institution backing one of the largest gaming platform operators in the world, joining forces to tackle a potential huge market. Working with a substantial financial partner provides the firepower that we need to take advantage of the significant opportunities that will be provided by a regulated US gaming market, and we are enormously excited by the opportunities that it will provide.”

888’s share price was up by more than 5% this morning, and Peel Hunt analyst Nick Batram said the JV with Avenue Capital “looks like a sensible deal and addresses some of the questions regarding the B2C opportunity in the US”.

“How far the US market ultimately opens remains uncertain. What is certain is that the market will be fiercely competitive, but 888 has given itself a good platform upon which to build,” he added.

Going live in Nevada became a reality last week when both 888 and its land-based partner received a recommendation for licensure in the Silver State. Both must now receive final approval from Nevada’s Gaming Commission before launching a real-money 888poker brand.

Under Nevada law only existing casino licensees can operate an online poker site, and according to one source, the deal will see 888 not only provide the software but also fund the licence fees and marketing costs, while paying Treasure Island 5% of future online poker revenues.

888 to be “one of the largest” US operators

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Partnerships with Caesars Interactive Entertainment and WMS, as well as a future B2C deal, to spearhead the operator’s US entry

888 chief executive Brian Mattingley (pictured) has claimed the operator will be “one of the largest, if not the largest, operators in the US” as the company awaits its Nevada licence hearing.

Speaking after 888’s impressive H1 report was released this morning, Mattingley confirmed that the operator is currently undergoing the routine investigation by the Nevada Gaming Commission as part of its online poker licence application.

Last month, the operator signed a partnership with WMS, in addition to its existing B2B agreement with Caesars Interactive Entertainment, and both will complement a B2C offering with an as of yet unconfirmed partner once 888 enters the US market.

“We have made sure that all three of our partners know exactly what is going on with each other,” Mattingley said. “We have been very open and honest about what our raison d’être is with the US territory and would not have signed deals if there was going to be conflict.

“The only thing I will say is it takes years of experience to open an online business. 888 is not just about writing the software, it’s a complete company, and if other people feel they can do that good luck to them but we think it will be a long time in the making. The amount of effort that we are putting in and that Caesars Interactive are putting in is immense, and I don’t think they’d be doing that if in six months’ time they were going to walk away,” he added.

After an overall revenue rise of 21% for H1 2012 compared to the same period last year, 888 has approved the issue of a US¢2.5 dividend. Since the launch of its Poker 6 platform in regulated markets last year, poker has performed well, and for the six months ended 30 June, saw a 72% revenue rise to $41.2m.

“The second half of the year will see increased investment in Spain, where we will attempt to build on our impressive market share, and also in the United States, where we are preparing for regulatory changes,” said Mattingley, for whom this was the first half-year report since his permanent appointment as CEO in March.

Meanwhile 888poker has launched a new TV commercial featuring Canadian mixed martial arts (MMA) champion Georges St-Pierre.

The online poker operator is offering players the chance to play St-Pierre via webcam and enter a one-off tournament celebrating the advert’s release.

Players can win a seat in the $10,000 tournament in a number of ways including via $3,000 freeroll, $1,000 knock-out and $1,000 team tournaments.

A brand ambassador for 888.com, St-Pierre holds the record for the all-time most consecutive welterweight title defenses and two MMA World Champion titles.

888 announces WMS partnership

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Operator signs second major partnership in the US – will see launch of free-play offering ahead of intrastate or federal legislation

888 has announced its second major partnership in the United States, signing a deal with WMS Gaming which will see the solutions provider offer 888’s online poker product to land-based casinos in the market.

The product will initially only be available as a free-play solution, but will allow casinos to launch real-money poker once federal or intrastate regulation is passed, and licences have been secured.

Commenting on the deal 888 CEO Brian Mattingley (pictured) said: “WMS is one of the main gaming suppliers in America, with a network of relationships with land-based operators that is second to none. The combination of 888′s cutting edge online poker platform and WMS’ customer relationships, marketing and distribution capabilities, provides the opportunity to build a substantial online presence.

“By deploying our joint online poker solution, casino operators in the United States will be able to provide their customers with a robust and secure network with the liquidity and games offering to give the best possible player experience,” Mattingley explained.

WMS president Orrin J. Edidin said that the deal would be invaluable for land-based operators looking to move online, explaining: “Aligning our efforts with 888 Holdings will allow WMS to provide our casino operator customers with the capabilities and benefits from one of the world’s most experienced online poker operators which will significantly support their efforts to benefit from online poker in the United States as it becomes legal.”

Following the announcement of the deal analyst Nick Batram of Peel Hunt reiterated his firm’s ‘Buy’ recommendation, explaining that the deal gave 888 scope to further enhance its US presence: “It is possible that the relationship with WMS could be developed further, the US group’s other partners include brands such as Hasbro, Warner Bros, Fremantlemedia and CBS,” adding that “There is no mention of the word exclusive and this is very much 888’s strategy in the US.”

“Whilst the true value of the deal with WMS will only be realised if online poker legislation develops positively, the deal reflects the growing presence of 888 in the online gaming market,” he concluded.

Both 888 and WMS have submitted applications for Nevada licences, with 888 having already secured approval from the state’s Gaming Control Board and Gaming Commission for its existing deal with Caesars Interactive – the first partnership between a Nevada-licensee and a foreign egaming operator. The deal – first signed in September 2009 – originally only covered Caesars’ European-facing poker operations, but was extended to cover the US market in January this year.

It follows Mattingley’s admission that the operator was in talks over a “nationwide” B2C deal and it further strengthens the operator’s foothold in the US market, and continues the company’s impressive turnaround under the operator’s former deputy chairman.

Since taking over from Gigi Levy, who has now also stepped down from the 888 board, Mattingley has overseen three consecutive quarters of record revenues, resulting in his official appointment as group CEO in March this year.

Mattingley has been bullish about 888 being the first operator to launch in the US market, with the company also in talks with a number of other casino groups including Trump Entertainment to acquire additional B2B clients and launch its own poker offering.

888 in talks with Trump Entertainment

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Deal could see 888 run B2C venture through 888.com and Pacific Poker brands


888 Holdings is in talks with Trump Entertainment Resorts and a number of other unnamed casino groups to increase its B2B clients and launch its own online poker brands ahead of a regulated US market.

Any such deal, that remains in early discussions, would see London-listed 888 offer its software and B2B services for Donald Trump’s Atlantic City-based casino brand, mirroring the agreement with Caesar Interactive Entertainment in Nevada. Trump Entertainment Resorts owns two casinos in Atlantic City, boasting 6,600 slot machines and around 350 gaming tables. However, according to a spokesman, depending on the type of deal struck 888 is also looking to “find a route to market” for its own brands that include Pacific and 888 Poker.

A spokesman for 888 Holdings told eGaming Review this morning: “With a unique position in the US, able to launch a real money offering immediately as either federal or state based regulation is finalised and upon licensing by gaming authorities, we are unsurprisingly in discussions with a number of relevant partners regarding the opportunities that may become available in this exciting market.”

The B2B partnership would supplement its software licensing agreement with Caesars Interactive to supply poker software for the US market. The original agreement only covered the UK, but was extended to the US at the beginning of last month to allow Caesars to launch real-money poker products as soon as intrastate or federal regulation is passed. The deal is non-exclusive, meaning that 888’s B2B arm Dragonfish will be able to sign and supplement this agreement with other US customers ahead of the market opening.

In an interview with eGR Magazine last week, newly appointed 888 Holdings CEO Brian Mattingley said the company was “on track” to bring its online poker to market in the US. “But until such a time was when we have thrashed out all the issues and we have signed the deal I’m in no hurry,” he said.

The gaming company is currently in demand in the US, in part down to the Nevada Gaming Commission finding its commercial relationship with Caesars Interactive Entertainment “suitable” in 2010. It is thought any intrastate or federal regulation will look kindly on companies which are already licensed in Nevada, due to its stringent licensing laws.

“We have got more people chasing us in the States, it’s becoming embarrassing. This one is important for us and I’m very, very sure we’ll do the deal. But if it doesn’t work, there’s other people out there,” he added.

It is believed a large portion of the investment will be provided by New York fund manager Marc Lasry’s Avenue Capital Group, which announced in a regulatory filing in October last year that it was to form an internet gaming joint venture with Trump Entertainment Resorts. Trump Entertainment owns 10% of the JV, in return for contributing the property mogul’s name to its operations. Trump’s daughter, Ivanka, told Bloomberg at the time that the joint venture was “positioning itself” to be the largest online gaming company if the industry is legalised in the US.

“In terms of the internet, brand is essential toward attracting players. The Trump brand would be the most powerful one in this space,” she said.