888 profits survive gaming ban

Online gaming firm 888 today said it overcame a 55% drop in revenues after the US banned internet gambling late last year to post full year pre-tax profits up by more than a third.

The group reported a 34% rise in profits for the year to December 31 to $90.5m (€66.5m), despite having to close half of its business following the US decision last October.

However, it is thought that a potential deal to sell to betting group Ladbrokes was halted due to complications over the US law change, with Ladbrokes said to be looking at ways to cap any liability in the US which could arise from a takeover of 888 as America continues its online gaming crackdown.

The two firms said last week they were no longer in talks, but remained tight-lipped over the nature of the deal, saying only that they had been in discussions about “a business transaction”.