PGE is a leading parimutuel horseracing and tote betting organisation and Dragonfish is to provide it with a comprehensive sportsbook offering followed by the introduction of casino, poker, bingo and quick play games once a more developed regulatory regime is in place in South Africa.

Dragonfish will also globally distribute horseracing pools and live race streaming through its licensees and via 888.com from tens of tracks for which PGE owns exclusive distribution rights.

“As a recognised world leader in harnessing the latest technology to globalise horseracing, we are very happy to sign with a partner that can provide us with market-leading technology to expand our offering worldwide,” said Rian Du Plessis, Chief Executive Officer for Phumelela Gaming And Leisure Limited.

“Working with Dragonfish going forward will help us to diversify our online offering and build on our current success.”

In addition, Dragonfish will provide PGE with its e-payments service and back-end software allowing for its swift integration into 888’s shared wallet, cashier and customer support systems.

“Horseracing is the largest sector in worldwide sportsbetting and we are delighted to work with a global leader in this area,” said Gabi Campos, Managing Director for Dragonfish.

“Phumelela has a huge user-base in South Africa and this deal will ensure that it has the best tools available with which to provide its customers with a cutting-edge online gaming offering.”

It reported earnings before tax for the year ending in December rose 23 percent to $55.7 million while its total operating income increased 21 percent to $262.5 million.

Revenues from its casino offerings were up 14 percent to $135.1 million but those from poker fell four percent to $77.2 million leaving the firm with cash and equivalents of $98 million, which was a decrease on 2007’s $104 million.

888 announced last week that it had established a separate division for its business-to-business activities under the Dragonfish banner and revealed last year’s results had been significantly improved by this new line of business. It signed up 14 white-label customers last year including a partnership with Sportech in June and three bingo networks towards the end of 2008. These were in addition to the seven agreements it already had in place while 888 stated that its business-to-business division is set to grow even further following four deals already this year including one with the Racing Post, a leading UK horseracing publication.

“We believe that this successful model, offering both business-to-business and business-to-consumer businesses, is key to growth in the online gaming market in the coming years,” said Gigi Levy, Chief Executive Officer for 888.

“Current trading to date in the first quarter of 2009 has been stronger than December with daily average revenues higher by more than five percent.

“While we are encouraged by this positive trend, the broader economic climate remains challenging and overall revenues in the first quarter are expected to be slightly lower than those for the fourth quarter of 2008, which was a slightly longer quarter.

“Poker and emerging offering grew quarter-on-quarter and new customer levels were considerably better than expected while casino trading was challenging.”

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Gigi Levy, Chief Executive Officer for 888, revealed that its new division would be called Dragonfish and be run by Gabi Campos.

888 publicised the move after announcing a white-label licensing agreement with Great Britain’s largest horseracing newspaper, the Racing Post, which will see it provide its market-leading gaming and back-end software along with customer support and payment processing services.

According to a piece from the Financial Times newspaper, 888 has focussed more of its resources towards business-to-business opportunities since the passage of the Unlawful Internet Gambling Enforcement Act (UIGEA) in the US in October of 2006. It acquired 14 new business-to-business customers last year and this latest agreement with the Racing Post brings 2009’s total to four.

‘We looked at combinations of ‘play’ and ‘tech’ and other things but they were either boring or taken, so we came up with ‘Dragonfish’,’ said Levy.

‘It’s an ugly fish but in places like China it’s considered lucky.’

Levy revealed that 888 had 50 potential business-to-business partners in the pipeline. However, he stated that income for the first three months of 2009 would lag behind the longer fourth quarter even though trading for the first quarter had been stronger than in December with daily average revenues up by more than five percent.

‘This generates extra revenue,’ said Levy.

‘If we were only business-to-consumer, I would be concerned. People are spending less.’

888’s business-to-business activities include the provision of software, customer support and payment systems for companies wanting to offer poker and casino games. It takes a commission on wagers placed and earned around $35 million last year from 19 operations such as online bingo site FoxyBingo.com.

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