888 positions itself for US expansion with All American Poker Network acquisition for a total consideration of $28 million
Online gambling operator 888 Holdings today announced that it has acquired the remaining 53% shares in All American Poker Network (AAPN) in a bid to pursue further expansion in the US gambling market.
888 said in a press release from earlier today that it will pay $28 million in cash to assume full control of the US-focused online poker network. The gambling company set up AAPN back in 2013 as a joint venture with US partner Avenue OLG Entertainment LLC. The joint venture was established to help 888 launch its online gambling brands in New Jersey’s iGaming market, which had just been regulated at the time. The 888poker and 888casino brands went live in the state in the fall of 2013.
888 said in today’s press release that the acquisition of AAPN will give it “independent control of its growth strategy in the US.” Similarly to other major gambling companies, 888 has been looking to expand and cement itself in the US market, following the mid-May US Supreme Court ruling that struck down a federal ban on sports gambling. Legal sports betting operations have started in eight states since the landmark SCOTUS decision and many more are expected to join the bandwagon next year.
888 launched its sports betting brand in New Jersey in September, marking its first time of operating sports gambling in the US. The company recently signed a sponsorship agreement with the New York Jets that became the first of its kind between an online gambling company and an NFL franchise.
Additional Operational, Technological, and Commercial Flexibility
888 Chief Executive Itai Frieberger said today that the acquisition of AAPN will give 888 “additional operational, technological, and commercial flexibility” to develop innovative and exciting partnerships and launch its products in new states.
The transaction “places 888 in an even better position to take advantage of the significant growth opportunities in the US”, the executive added.
In addition to New Jersey, 888 has also been operating in Nevada and Delaware for a while now. It previously began offering online poker liquidity to players from the aforementioned two states through its AAPN network. New Jersey players were allowed to take advantage of the opportunities shared poker liquidity offered in May 2018. Following the liquidity rollout, players from the three states were able to compete for a cumulative jackpot and participate in joint tournaments. 888 shares were up more than 16% on the London Stock Exchange on the day of rollout.
888 said today that to complete the AAPN transaction, it would pay $10 million on or around the day of the announcement of the deal, and another $18 million by the end of March 2019.
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