888 Holdings acquires All American Poker Network
888 Holdings acquires All American Poker Network in a bid to expand into the U.S. gambling market. According a statement by online gambling operator 888 Holdings, they bought the remaining 53% interest in AAPN for $28 millions. In addition, the will make the purchase via its 888 US and 888 US Holdings subsidiaries.
The acquisition is part of their strategy to facilitate their growth in the American gambling market. In addition, the press release said “the acquisition gives the group full flexibility to deliver on multiple potential growth opportunities”. This also includes developing new strategic partnerships in the United States.
Originally, the AAPN partnership was a joint venture between Avenue Capital and 888 Holdings that dates back to March 2013. Furthermore, that venture was made for 888’s brand to enter the legal U.S. online gaming market. Since then, 888poker and 888casino have been operating in New Jersey.
Expanding in the United States thru Partnerships
The Sportsbook Pay Per Head industry says this acquisition will give 888 control over its expansion strategy in the U.S. This means that they will now be able to sign new partners to further spread their proprietary products. Thus, 888 is hoping that this will help them pave the way to spread 888sports in other U.S. states.
One of the recent partnerships was with the New York Jets. This made history because it became the first time an NFL team made a deal with an iGambling operator.
Itai Frieberger, the chief executive for 888 said that “ownership of AAPN gives 888 additional operational, technological and commercial flexibility”. Thus, they can now make innovative new partnership in new states thru their B2B and B2C channels.
Even though their time with Avenue Capital being successful, 888 believes it is the right time to be independent. The $28 million payment to Avenue Capital to purchase the rest of All American Poker Network will be in cash. Furthermore, $10 million will be paid shortly and the rest will be paid by March 31, 2019.