888 Holdings extend Delaware online gambling tech pact

UK online gambling operator 888 Holdings has extended its technology contract with Delaware’s online casino and poker monopoly.

On Monday, 888 announced that it had extended its online technology deal with the Delaware Lottery by another two years. The parties have been joined at the hip since 2013, the year the state launched its online gambling market via the state’s three ‘racino’ operators – Delaware Park, Dover Downs and Harrington Raceway.

Delaware’s online offering hasn’t enjoyed the success reported by states with more competitive markets such as New Jersey and Pennsylvania, which have been setting new records during the COVID-19 lockdown. Delaware’s iGaming revenue hit a mere $1.13m in May, and while that was more than triple the sum the market reported in February, it’s still nowhere close to being proportionate to those other states based on population counts.

Whatever the criticisms directed at Delaware’s homogenous offering, 888 continues to impress investors back home. Having bottomed out at 70.7p back in mid-March, 888’s shares topped 176p last week, in part due to the release of a trading update in which the company predicted its FY20 adjusted earnings would come in “significantly ahead” of prior forecasts.