888 Holdings, Caesars Extend Online Gambling Agreement

Online gambling firm 888 Holdings and Caesars Entertainment Corp on Tuesday announced they have extended a licensing agreement that would allow Caesars to utilize 888’s Internet poker software in the United States. 

888 said the agreement would see its arm, Dragonfish, power a selection of private poker brands of Caesars, one of the largest casino operators in the United States and owner of the famed Caesars Palace, once online gaming is permitted under the new regulatory regime.

"Utilising 888's state of the art poker platform, the agreement will allow the launch of a real money offering immediately as either Federal or state based regulation is finalized and upon licensing by gaming authorities," 888 said in a statement on Tuesday.

The state of Nevada has already approved legalized intrastate Web poker with prospects for “real money” play as early as March. 

Rival Vegas casino groups MGM Resorts International and Boyd Gaming have teamed up with another online poker giant, Bwin.party Digital Entertainment. 

Last month, 888 had said it expected core profit for 2011 to be significantly above market expectations, aided by strength in its casino and poker businesses.

888 shares, which have risen 41 percent in the last three months, closed at 47 pence on Monday on the London Stock Exchange, valuing the company at about 165 million pounds.

- Aaron Goldstein, Gambling911.com (Reuters News Service Used as Reference for This Report)