Casino News - 888.com look set to make an initial public offering

888.com are looking to prepare for a quick stock market flotation.

• Last week it was suggested that 888.com owned by the Cassava Group was to look for a stock market flotation. It is looking to launch an initial public offering with an expected value of £700 million. The rush to float may be triggered by its possible interest to takeover rival PokerStars, the world's second biggest internet poker company.

If this takover were to be successful then it would mean that 888.com would be a rival to the new casino giant PartyGaming.

Although nothing has yet been confirmed rumours gathered pace when stories circulated in the City that HSBC Cassava's bookrunner was busy pitching the flotation details to institutions.

888.com is currently the largest online casino operator with excess of 20 million member accounts in more than 150 countries. Analysts bekieve that profits annually are currently £100 million from 888.com and their other brands including Reef Club Casino, Pacific Poker and Casino-On-Net.

There are however concerns with a possible flotation amid the concerns about the legality of online gaming in the Us, where the majority of income is generated. Cassava is Gibralter registered but just how the American Authorities will look at this is still unclear.

Cassava is expected to place about 25% of the company but the value of the company would be boosted if they were able to aquire another online casino or poker site.