888 and PartyGaming shares both on the up

888 and PartyGaming see shares rise

888 and PartyGaming see shares riseAfter the proposed venture with Caesars Interactive Entertainment was approved earlier today, 888 has seen shares receive a boost.

Most will be wondering whether the company may now add an extra 8 onto the end of their name after their shares were 8% higher than at the start of the day. The clearance of the deal meant the shares were 3.25p higher than the previous day as they reached 43.5p.

A broker at Shore Capital explained that this wouldn’t be the last deal of this type to be struck, and said, “We believe the clearance is the first for a foreign operator and potentially paves the way for other foreign online gambling operators to enter into a joint venture with US based gaming companies (initially outside of the US).

“Furthermore, we believe this represents further encouraging momentum in the re-appraisal of online gambling in the US by regulators, with the regulation of online gambling now looking increasingly likely, at least on a state-by-state basis in 2011. Recently we have seen encouraging momentum from states such as Hawaii, Florida, Iowa, California and New Jersey all indicating a willingness to regulate online gambling.”

The deal may be the first of a couple that 888 makes over the next few weeks as the rumors over a possible tie-up with Ladbrokes will continue to persist. This may now cool down slightly after a tie-up between Ladbrokes and bwin.party was muted yesterday, which in turn also saw PartyGaming shares up 4.9p to 191.3p but you’d imagine the talk of a Lads/888 will continue to be there.