Online Bingo Gambling Drives 888 Holdings First Quarter Revenue
When large figures are being thrown around in relation to how much a company can be sold for, it is important that the selling company shows a good profit. That is why 888 Holdings executives were excited to see the first quarter revenue figures.
It has been rumored and the companies have acknowledged that a takeover of 888 may soon be coming by Ladbrokes. One of the big issues, as is the case in any negotiations, is the selling price. For the companies to merge, a common ground must be found.
For all of the online gambling services that 888 Holdings offers, it was their online bingo platform that drove the revenue spike in the first quarter of 2011. Revenue was up nine percent, to $75 million for the quarter. Ironically, it may be the bingo that keeps the sale of the company from going through.
In December of 2009, 888 acquired Wink Bingo, one of the sites that has caused the revenue increase. 888, however, still has to make payments on that sale, and that may cause Ladbrokes or any other company to drop their offer for 888.
The online gambling community has been buzzing with all of the partnerships that have been formed in the past couple of years. The biggest factor for the partnerships is the possibility of entering the US market, which may open up in the near future.
The warning signs have come from within the country where US gaming companies have started to partner with foreign online gaming giants who already have platforms set up that can handle US customers, should online gambling become regulated in the states.
Representative John Campbell is now leading the charge to pass online gambling regulations, taking the reigns from Rep. Barney Frank. Campbell has been successful so far in convincing many lawmakers within his own party to vote in favor of Internet gaming regulations. Conservatives have traditionally steered clear of supporting online gambling.