* 888 first unique online betting firm to obtain US license
* Launch could come by mid Q2 - source
* First launch likely to be own-brand internet poker
* Bwin, Playtech, Betfair could also benefit
* 888 shares flat, hit 7-yr high earlier in month
By Rosalba O'Brien
LONDON, March 22 888 could launch an
online gaming offering in Nevada, home to gambling centre Las
Vegas, as soon as May, a source said after the group won the
first ever U.S. license to be awarded to an internet betting
The license to operate in Nevada granted to London-listed
888 Holdings Plc is the first time an internet gambling company
has been licensed in the United States, which banned online
gambling in 2006.
Following receipt of the license, 888's launch of online
poker in Nevada could come as early as mid-second quarter, a
source close to the situation said on Friday.
Revenue from Nevada alone is likely to be limited, but the
license is a key step for 888 in its development in the wider
regulated U.S. online gaming market.
"This is an historic moment for 888. This is the first time
a company uniquely providing online gaming has been licensed by
any U.S. jurisdiction," Chief Executive Brian Mattingley said.
The decision, announced on Thursday, had been expected after
the Nevada state gaming control board voted to recommend
approval earlier this month.
888 has already signed a deal with Las Vegas operator
Treasure Island to launch online poker under its own brand in
It has also a signed a non-exclusive deal with Las Vegas
casino brand Caesars to power the web spin-off of
Caesars' World Series of Poker tournament, and has agreed a deal
with slot machine operator WMS to give it an online
888 has said that, while U.S. income could eventually be
considerable, it will likely not have a significant bottom-line
impact until 2015.
Internet betting was barred by Congress in 2006, dealing a
blow to online gaming companies including 888 who had set up
there and driving them elsewhere in their quest for growth.
But the legal position in the United States is changing and
national legislation is set to be introduced in the spring as
the federal government looks to overtake tax revenue-hungry
states racing to follow Nevada in legalisation.
Last month, New Jersey - home to the casinos of Atlantic
City - legalised internet gambling in the state.
Analysts say companies like 888 and larger rival bwin.party
are well placed to take advantage of the move towards a
regulated market, having the experience and infrastructure from
years of operating in Europe.
"Management teams will need to successfully juggle
maintaining growth in the core business whilst preparing for
U.S. re-entry," said analysts at brokerage Panmure Gordon.
"The highest visibility on U.S. re-entry lies with 888 and
bwin.party, but Playtech is reported to be in advanced
discussions and Betfair's provisional betting exchange
license in California remains a source of key upside should it
graduate to a full license."
Bwin, the world's largest-listed internet betting firm, said
earlier this month it was throwing more resources at the U.S.
and other soon-to-be regulated markets and backing out of
smaller, unregulated ones.
888, like other online gambling firms, suffered a plummeting
share price in 2006 at the time of the U.S. clampdown. Yet the
stock hit a seven-year-high earlier this month on hopes of a
return to the United States.
By 1116 GMT the shares were flat at 162.6p.