888 To Power Shared Nevada/Delaware Poker Network

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Tuesday, September 2nd, 2014 | Written by Stephen Smith

Following the states of Nevada and Delaware signing a landmark agreement this year to share their online poker player pools, 888 has now been named as the operator which will provide the platform for the new poker network. At the same time the news was announced, 888 also revealed that Brian Mattingley would soon be stepping down from his role as Chief Executive Officer after three years of service.

Rise of the AAPN online poker network

In Delaware, 888 is the monopoly provider for each of the state’s three licensees, while in Nevada 888 currently powers the WSOP.com poker website, and is expected to add a Treasure Island-owned skin, and their own 888 skin in the near future. When the Nevada/Delaware interstate compact is finally operational, all six sites will then form an online poker network known as the All American Poker Network (AAPN).

Commenting on its plan to form the biggest regulated poker network in the United States to date, an 888 investor statement read: “We are aiming to deploy a shared poker network across the two states which will offer poker players in each state an enhanced customer experience.”

All American Poker Network in New Jersey

888 already operates the All American Poker Network (AAPN) in New Jersey, but since launching its poker room remains the sole online poker room on the network. According to PokerScout, APPN is currently the third most popular site in New Jersey with 70 cash game players over a seven day period, behind Borgata (bwin.party) with 140 players, and WSOP with 120 cash players. However, as Sean Gibson mentions on cardschat.com:

“For those that might think the network’s name is familiar, simply look to New Jersey where it already exists. The 888 group already runs an entity known as the All American Poker Network in a joint venture relationship with Avenue Capital. New Jersey is not part of the interstate pact, so those playing on the 888 site in the Garden State will not play with players in Nevada or Delaware.”

New Jersey a slow market

Despite being the largest of the USA’s regulated poker markets, 888 has reported a $4.4 million loss in H1 2014, blaming New Jersey‘s disappointing result on a myriad of factors. Theses include the initial cost of launching its iGaming business, and the cost of its marketing activities, as well as geolocation and payment processing problems, and having to compete against unlicensed competitors operating in New Jersey.

As a result, CEO Brian Mattingley has described being taken completely by surprise by the slowness of New Jersey’s online gambling market, and even added a “general lack of awareness in the market of legalized online gaming,” as yet another significant factor holding back the industry.

Nevertheless, a recent 888 company statement has reaffirmed its commitment to the US iGaming market via its B2B business, and through its AAPN joint venture.

888 second biggest poker network worldwide

888poker is the second largest poker network worldwide with a seven day average of 2,100 cash game players and a 24 hour peak of 3,541 players.

“We have maintained our position at number two in the global PokerScout rankings, which is testament to the strength of the 888poker brand, our ‘smart’ marketing strategy and CRM,” an 888 company statement read.

However, whilst the third placed iPoker network (2,000 players) is only just trailing 888, PokerStars continues to monopolize the industry with roughly ten times the business of its nearest competitors. If PokerStars then manages to obtain a license in the USA, the pickings are likely to become even slimmer for 888 and other online poker operators.

CEO Mattingley stepping down

After just three years as 888 Chief executive officer, Brian Mattingley has announced he would soon step aside from the position and instead become the executive chairman of the board. Recently, Mattingley caused a stir after seeming to support PokerStars’ return to the United States, stating that he thought “they would make all of us work much harder and it would expand the market.”

However, in spite of posting record H1 revenues of $225 million in 2014, up 13% from the $200 million generated in H1 2013, 888 pre-tax profits actually fell by 4% to $34 million. The company subsequently put the blame on the initial cost of entering the regulated US iPoker market, in addition to unfavorable foreign exchange rates.

Following announcement of its falling profits, shares in the company are currently trading at 126.75p giving 888 a market capitalization of £448.86 million. Over the past 52 weeks 888 stocks have fallen to as low as 109.25p and risen as high as 173.70p.