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Poker News

888 Acquires Majority Stake in AAPN

Written By: Maya Michaels | December 19, 2018 | Posted In Poker News

The online gaming operator 888 Holdings has acquired a majority stake in the All American Poker Network (AAPN) for a price of $28 million.

This move is in line with 888’s strategy to target US expansion. The buyout of the remaining 53% of its investment partner Avenue Capital, will enable 888 to seek better opportunities for growth in the US and also create additional value for shareholders.

With this move, 888 gains total control over the US market and can now sign partnerships and deploy products and technology in new states as they regulate without partner’s approval. They will initially pay $10 million and the remaining $18 are to be paid before March 2019.

“The acquisition of the remaining stake in AAPN is an important strategic step towards 888 achieving its exciting long-term potential in the US,” said 888 CEO Itai Frieberger.

“Taking outright ownership of AAPN gives 888 additional operational, technological and commercial flexibility to develop innovative and exciting new partnerships and launch in new states – through both B2B and B2C channels – as and when future regulation allows.”

The joint venture between 888 Holdings and its partner Avenue OLG Entertainment was established back in 2013 when they launched operator’s B2C brands in the US regulated market.

888poker and 888casino started operating in Nevada and New Jersey back then and 888 has tried ever since to strengthen its position on the market. This September they launched 888sport and the company has forged the first sponsorship deal between iGaming operator and National Football League (NFL) through its deal with the New York Jets.

888poker is the only online poker site operating in all three available US markets Nevada, Delaware and New Jersey and is preparing for the Pennsylvania launch in early 2019.

It also supplies software for WSOP NJ and WSOP NV. The three states merged their player pools in May but revenues had increased only slightly so far. Pennsylvania is expected to provide the boost needed when it finally regulates online poker in early 2019. Other states are expected to legalize online poker in the future and 888 has secured its place in the first row and in a good spot to capitalize on the growing market.

AAPN cements 888’s long-term commitment to the US market despite things unraveling slowly in the US market.

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