888's Robust Online Poker Expansion

The online gambling regulation process has its rough spots, but companies such as 888 Holdings are indicating the overall viability of online gambling.

Revenues up 15%

888 reported revenues of $111 million in 2014, representing an increase of 15% from the previous year, and demonstrated general growth across the board for all products.

Business to consumer revenue increased an encouraging 11% for 888. The most significant portion of those gains came from casino proceeds, at 15%, and bingo at 17%.

Online Market Growth

Online poker grew at a slower rate, at 2%. This Q2 figure was slightly down from the 2014 figure of 4%.

Industry and investor data still indicates that these figures reflect well on the overall state of 888's online development, as the annual global online poker market has otherwise been declining, in a vacuum where smaller companies have had to wait for the completion of individual government regulatory processes to enter the online market.

888 Grows Against the Tide

The overall market decline of approximately 8% belies the continued success of 888, whose traffic is still growing, and is up almost 1% this year. The 2% growth figure reflects more telling activity in terms of user traffic at 888: active player traffic has increased a substantial 12% in Q2; however, revenue per player is down 9%.

888 Emphasizes Recreational Play

The reason that more players are playing but betting less is simple: 888 emphasizes recreational play, implying the soft sell approach to online gambling may foster more user trust and comfort.

888 Performance Update

Performance-wise, 888 holds the number two position for online poker wager traffic in the two areas where it is already licensed: the European market (via Gibraltar) and the Spanish market. In the US, 888 holds business-to-business operational licenses in regulated state markets, as exclusive software provider to the state of Delaware, and the World Series of Poker provider in Nevada and New Jersey.

B2B Results

Overall, B2B revenue for 888 increased 37% for the year. The $16 million B2B activity figure accounts for 15% of total revenue, 4% higher than the 11% it posted in Q1 2013.

Finding the Right Message

At the end of the day, its not about how much you bet, but how much you enjoy playing. The 888 message may be a key to effective industry outreach overall.