In a surprise announcement on Friday, Harrah’s Interactive Entertainment, the branch of the company created earlier this year for the eventual foray of the longtime land-based casino powerhouse into the online gaming world, stated that they had entered into a long term deal with Dragonfish, a private business to business enterprise under the 888 Holdings PLC banner.
Earlier this year, Harrah’s – sensing the need to be ready when American laws, particularly the UIGEA, are either changed or overturned – created a branch of their company called Harrah’s Interactive Entertainment. Solidifying this organization, Harrah’s hired one of the most notable names in the online gaming world, former PartyGaming Chief Executive Officer Mitch Garber, to assume the same position with Harrah’s Interactive. With the signing of the deal with Dragonfish, Harrah’s will soon have everything in place for when the legal situation is cleared up in the United States.
The surprise deal will cover every aspect that Garber and Harrah’s Interactive need to have in place for an entry into the online gaming arena. The long term deal with Dragonfish covers the creation of an online poker and casino software, a system that will provide for e-payments, Customer Relations Management software and VIP services. There is no firm date for the debut of a Harrah’s related online gaming portal but, when it does come to fruition, there are two very popular and known commodities that will be the face of Harrah’s Interactive Entertainment – the World Series of Poker and Caesars Casino.
“This is a ground breaking deal for 888 and demonstrates our ability to provide real value to globally renowned, land-based casinos and their leading brands,” Gigi Levy, the Chief Executive Officer of 888, stated during the announcement of the deal. “We have the structure in place to realize our B2B division’s full potential over the next eighteen months and beyond and today’s announcement of our partnership with an industry giant is further vindication of this strategy.”
Garber was equally enthusiastic about the new deal with Dragonfish, adding, “As we develop and roll out our interactive strategy, we have chosen to work with 888, primarily for their world-class technology, scalability, and a strong commitment to compliance and responsible gaming.” As previously stated, there is no further details as to when these Harrah’s branded commodities will enter into the online gaming world.
The announced deal is a windfall for 888 Holdings as they recently had less than stellar news regarding their bottom line. In a report earlier this week here on Poker News Daily, it was revealed that 888 Holdings has seen significant declines in their earnings and revenues for both their online casino and poker room from 2008 to 2009. In their mid-year report to shareholders of the company, 888 saw a 13% decrease in overall revenue, down to $117.9 million midway from 2009 compared to $135.4 million for the same period in 2008. Casino revenues were down 20%, from $69.8 million last year to $55.9 this year, but it was their flagship poker room, 888 Pacific Poker, that saw the biggest drop in numbers. The online poker room saw revenue fall a full 35% in 2009, dropping from $40.2 million in 2008 to just $26.2 million in the period from January to June of this year.
While these numbers may appear bleak for 888, the surprise of the report was the exceptional performance of Dragonfish, which was one of the only parts of the company on the 888 dockets that was in the black. The company, just created earlier this year, signed several important deals that allowed 888 Holdings to report a 42% increase in business to business dealings, from $17 million in 2008 to $24.3 million in the first half of 2009. The signing of the deal between Dragonfish and Harrah’s Interactive Entertainment is a sizeable coup for 888 Holdings and should help not only Dragonfish but also 888 Holdings’ bottom line tremendously.
