888’s Deal With Harrah’s Huge

Posted on: September 11th, 2009 8:35 am | By: Jeremy Schrute

Earlier in the week, 888 struck a deal with American casino Harrah’s in a move that could pay huge dividends for the online casino. 888.com’s business-to-business arm, Dragonfish, signed a deal with Harrah’s Interactive Entertainment, the online casino version of Harrah’s popular Las Vegas casino. Harrah’s online casino currently only serves customers outside the United States, due to the Unlawful Internet Gambling Enforcement Act of 2006, which is under threat to be repealed by bills in both the House and Senate.

In the deal, 888 will provide game software, e-payment services and customer support to Harrah’s. The deal, though, has much larger implications. If UIGEA is repealed, as many expect, then that will open a new market for online casinos in the United States. The bills that would repeal the law, however, also contain provisions that would limit gambling licenses to casinos that pay taxes to the American federal government, which would not include foreign operators. There is still a chance the provisions could be stricken from the bills, but many are worried that America will not allow overseas online casinos to do business in the American market. By signing this deal with the huge American casino, 888 increases the likelihood that they could be given a license to provide services to American customers.

There is still a lot of work to be done (such as repealing UIGEA), 888’s deal has kind of lit the charcoal that could stoke the flames of change in the U.S. With overseas online casinos signing deals with American casinos, the push to legalize and legitimize online gambling in America seems stronger than ever.

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