Even if online gaming company 888 Holding plc (LSE:888) does not say so officially, Friday's deal with Harrah's Interactive Entertainment Inc., a subsidiary of US casino operator Harrah's Entertainment Inc., to provide online gaming services in the UK, is considered by 888 as an entry ticket into the US market is some form or another.
As an industry leader, Harrah's supports legalizing online gambling in the US, and its strength gives the company a say on the subject in the halls of Congress.
Nonetheless, the day is still far off before Congress reverses its ban on online gambling. Even though US President Barack Obama is considered a liberal who supports the right to an abortion, as well as pushing other measures that his opponents cry "shall not pass", but that is a far cry from cancelling a law signed by his predecessor. Obama has other, more important matters, such as healthcare and the financial crisis, to deal with, so 888 will have to wait quite a few years before it can reenter the US.
If and when the Unlawful Internet Gambling Enforcement Act of 2006 is cancelled, the first companies that will likely obtain online gaming licenses will be US companies, such as Harrah's. If and when this happens, and assuming that Harrah's is still collaborating with 888, only then will 888 get a Green Card to reconnect with its US customers.
The surprising aspect of the 888-Harrah's deal is that Harrah's does not care that 888 still has not reached a settlement with the US Department of Justice that will clear the company of its murky past.
888 CEO Gigi Levy told "Globes", "888 does not talk much about a settlement, but the fact that Harrah's chose us says that we have no grounds for concern, not for the company or its investors."
That as may be, and Harrah's may have done 888's work with the Justice Department, and given its certificate of health for 888.
Harrah's Interactive Entertainment CEO Mitchell Garber, was formerly the CEO of 888's main rival, PartyGaming plc (LSE: PRTY).
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2009
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