Internet
casino firm 888 plans $500 mil. IPO damage
As
reported by the Bloomberg News
888
Holdings Plc, the world's largest Internet casino operator
by number of visitors, plans to sell about $500 million
of stock in an initial public offering as its owners cut
their stakes and tap demand for online gambling companies.
The
casino and poker gaming company has hired HSBC Holdings
Plc to manage the sale, 888 said today. The Gibraltar-based
company may be valued at about $1.5 billion when it sells
shares in London this month, bankers said.
The
online gaming industry may double revenue to $24 billion
in 2010, from $12 billion this year, 888 estimated, citing
gaming consultancy Christiansen Capital Advisers LLC.
Investors are betting that growth will outweigh regulatory
concerns in the United States, where the Justice Department
considers online gambling illegal.
"It
is unlikely that the U.S. will be able to stop people
from gambling," said Julian Easthope, analyst at
UBS AG in London, who advises investors to buy stock of
rival PartyGaming Plc.
Shares of PartyGaming have gained 36 percent since its
IPO in June through Wednesday's close, valuing the company
at 6.3 billion pounds ($11.4 billion).
888,
which said it may use its listed stock to pay for acquisitions,
reported a 30 percent gain in first-half profit to $24.5
million. Revenue rose 48 percent to $123.7 million.
The company seeks "to become the market leader in
the global online gaming entertainment industry,"
Chief Executive John Anderson said in a phone interview.
The IPO will "increase further our brand profile,
recognition and credibility."
Marketing
and advertising 888's brand cost the company $51 million
in the first six months of the year, said Anderson. Founded
in 1997, 888 operates the Casino-on-Net and PacificPoker
Web sites. Casino business accounts for about two-thirds
of 888's sales.
Anderson
plans to reduce the company's reliance on the U.S., which
accounts for about 55 percent of sales, to concentrate
on Europe and the Far East.
"No
one country should account for more than half of our sales,"
he said.
The
company, which has never made an acquisition, is also
seeking takeovers, said Anderson, without giving details.
The online gaming industry will consolidate from more
than 1,000 global players to less than 100 over the next
five to six years, he added.
888
founders, brothers Avi and Aaron Shaked, have a combined
stake of 70 percent, and a family trust controlled by
Shay and Ron Ben-Yitzhak holds about 20 percent. Employees
of the company own the rest.
CEO
Anderson, former property director at Ladbroke Plc, now
Hilton Group Plc, said he will receive about 1 percent
of 888's shares at the time of the IPO, part of which
he may sell.
Shares go on sale to money managers around mid-September
and the offering runs until the end of the month, bankers
said.
Mono
Wind Casino Re-Opens
As
reported by abclocal.go.com
An
exciting night for gamblers in the foothills on Thursday,
as Mono Wind Casino re-opened its doors.
The casino voluntarily closed last week after Fresno County
Sheriff's deputies collected $170,000 for a judgment owed
to former manager Michael Troilo.
Under
a compromise reached Thursday, the tribe will get back
$70,000.
Troilo
has also agreed not to seek the rest of the $700,000 judgment
until a mid-October hearing.
Both sides say they're satisfied by the deal.
"He's
truly satisfied. I think it's a sign of good faith by
the tribe, that they are truly trying to take care of
the judgment," says Troilo's attorney, Andrew Jones.
"This
is a good day for the Mono Wind Casino. And in the future,
we hope to fully resolve our differences with Mr. Troilo
and today was a step in the right direction," said
the tribe's attorney, Paul Marks.
Despite
the week long closure, all 89 casino employees will return
to work