888 Holdings To Purchase Wink Bingo

Wink Bingo has been selected by Gibraltar based 888 Holdings Plc. for purchase. The company has inked an agreement to purchase Wink Bingo for the sum of £60 million to in order to upgrade 888’s clout in this expanding area of the online gambling market. Under the current agreement, Daub Ltd, Wink’s current owners would receive an initial payment of £11 million to be followed by a payout of as much as £48.7 million to take place during the second quarter of 2011. This would depend on the company’s performance. This would bring the final total to £59.7 million which would be about $96 million in US dollars.

Gigi Levy, who is 888 Holding’s Chief Executive Officer, has commented that the purchase of Wink Bingo will enable his company to expand its online presence into what is presently the lucrative U.K. market. Having already purchased Globalcom Ltd. for $43.4 million back in March of 2007, this would be 888’s second acquisition, of a bingo operation. It is believed that bingo represents the future new growth area for the online gambling industry. Three years ago, American regulars forced 888 to cease its operations in the United States which led to its market value being greatly reduced. It is Levy’s belief that if the United States were to reconsider it’s current ban on online gambling then the company would once again have a chance in the future U.S. market.

In early 2008, Wink Bingo gained significant ground and soon became a valued asset with massive brand recognition. Generating revenues of £15 million and pre-tax profits of £1.3 million in the 11 months prior to 30 November, Wink Bingo attracted in access of 60,000 active players a month. Other major players in the online bingo market such as PartyGaming, Gala Coral and Gamesys will now, with 888’s acquisition of Wink, be able to become more competitive. Last July, for £96 million, PartyPoker bought Foxy Bingo which is owned by Cashcade, after 888 lost its bid for that same company. At the time Levy was quoted in the Times Online, as saying that his company views bingo as a social rather than a gambling experience. He added that although most players are situated in the United Kingdom there is still the opportunity to bring in players from Spain and Scandinavia.

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