Reputable gaming firm 888 Holdings recently acquired the outstanding stake in All American Poker Network (AAPN), emerging as the sole proprietor of the corporation. 888's next step will be to consolidate and grow its market share in the legalized US iGaming market.
The consolidation of 888 casino presence in the iGaming market across North America begins in the United States with the company's acquisition of the remaining stake of All American Poker Network (AAPN) a company it helped create in 2013.
The private equity company, Avenue OLG Entertainment and the Holdings initiated the deal with the sale of the company worth $28 million. The agreement specifies that $10 million will be paid upfront, with another $18 million payment delayed to March 31, 2019.
The completed acquisition will further 888's ambitions of a more favourable position in the US market, an essential factor when facing down competitors like PokerStars. 888 also plans to forge new partnerships and accelerate its technological innovation.
The CEO of 888 holdings, Itai Frieberger stated that the desire for "long-term potential informed his company's actions".
Claiming the outright ownership of AAPN provides 888 with supplementary operational, technological, and commercial flexibility that will enable it to seek out new partnerships and launch in new states via B2B and B2C channels.
Mr. Frieberger also observed that consumers and businesses will benefit from the added value for present and future shareholders. The AAPN was initially a joint-venture between 888 and OLG. This venture was a way for 888 to gauge the potential of the US market.
The 888poker and 888casino brands have fast gained popularity in New Jersey. The company's sports betting operation was handed a lifeline by the PASPA repeal that gives individual states free rein to allow sports betting. The US sports betting sector at large has taken significant steps in gaining legitimacy, thanks in part to the demonstrated revenue boosts it can bring to mainstream sporting organizations.
The AAPN's intended purpose was to provide 888 with the flexibility required to operate in a highly-regulated, restrictive market. The company was cultivating its US portfolio while pursuing other global investments when the country's regulatory measures were relaxed.
The company's current strategy involves steady progression into the US market, in line with the gradual relaxation of regulations.
The United States is a litigious environment and territories like Missouri are reconsidering the taxation of the sports betting industry, while Kentucky and Pennsylvania are on the verge of approving online iGaming and poker.
The absence of a centralized gaming network means that local preferences are tantamount, with individuals states creating their own laws by allowing the public and representatives to develop individual systems for iGaming and sports betting operations.
While this presents a challenge, it allows companies like 888 to use their flexibility to plot an appropriate course.