17555 30032010 proof 11 17555 30032010 proof 11
annual report  accounts 2009
 888 holdings plc
suite 601701 europort
europort road
gibraltar
t 350 20049800
f 350 20048280
e info888holdingsplccom
www888holdingsplccom
 888 holdings plc  annual report  accounts 2009 
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888 holdings plc
annual report  accounts 2009
welcome
888 is one of the world’s most popular 
online gaming entertainment 
and solutions providers
888 has been at the forefront of the 
online gaming industry for over a 
decade allowing both players and 
b2b partners to enjoy a worldclass 
gaming experience
888’s consumer facing websites offer more 
than just online gaming they are entertainment 
destinations places where people can enjoy a 
truly interactive experience and be part of an 
online community that shares common interests 
as well as providing players with an innovative 
comprehensive and enjoyable gaming experience 
through dragonfish partners also benefit 
from 888’s decade long industry experience 
dragonfish provides partners with total gaming 
services — customisable solutions offering the 
ideal platform through which to establish an online 
gaming presence and monetise their brand
888 websites provide an enjoyable customer 
experience in a safe and secure environment 
888 remains a leader in responsible gaming with 
specialist websites dedicated to both corporate 
responsibility and responsible gaming 
our strategy is to increase shareholders’ value 
through achieving profitable growth both 
organically through the acquisition and retention 
of valuable players and partners and through 
strategic acquisitions
 01  highlights
 02  chairman’s statement
 04  chief executive officer’s review
 08  enhanced business review
 22  corporate social responsibility
 26  risk report
 27  board of directors
 28  corporate governance
 31  remuneration report
 39  directors’ report
 42  independent auditors’ report
 44  consolidated income statement
 45  consolidated balance sheet
 46  consolidated statement of changes in equity
 46  consolidated statement of comprehensive
  income
 47  consolidated statement of cash flows
 48  notes to the consolidated financial statements
 75  company balance sheet
 76  company statement of changes in equity
 76  company statement of comprehensive income
 77  company statement of cash flows
 78  notes to the company financial statements
 80  shareholder information
contents
responsibility and responsible gaming 
our strategy is to increase shareholders’ value 
through achieving profitable growth both 
organically through the acquisition and retention 
of valuable players and partners and through 
strategic acquisitions
shareholder services
all enquiries relating to ordinary shares depository interests 
dividends and changes of address should be directed to the group’s 
transfer agent
capita registrars
the registry
34 beckenham road
beckenham
kent
br3 4tu 
tel 0870 162 3100
wwwcapitaregistrarscom
further information
for further information please contact
company secretary
888 holdings public limited company
suite 601701
europort
europort road
gibraltar
info888holdingsplccom
principal bankers
the royal bank of scotland plc
280 bishopsgate
london
ec2m 4rb
solicitors
freshfields bruckhaus deringer
65 fleet street
london
ec4y 1hs
hassans
5763 line wall road
gibraltar
auditors
bdo llp
chartered accountants 
55 baker street
london 
w1u 7eu
uk
bdo limited 
registered auditors
montagu pavilion
8–10 queensway
gibraltar
incorporated in gibraltar with
registered number 90099
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1   excluding share benefit charges of us7 million 2008 us84 million
2   excluding exchange rate loss of us27 million 2008 loss of us26 million
total operating 
income
247
263
2009 2008
down6
us million
total operating 
income — b2b
51
39
2009 2008
up33
us million
total operating 
income — b2c
195
224
2009 2008
down13
us million
total operating 
income — emerging 
offerings
25
14
2009 2008
up82
us million
real money 
registered customer 
accounts
71
58
2009 2008
up22
million
ebitda
12
46
56
2009 2008
down18
us million
ebitda margin
12
dividend
185
66
212
54
2009 2009 2008 2008
 
 
up22
us¢
highlights 
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annual report  accounts 2009
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chairman’s statement 
on behalf of the board of 888 holdings plc i am pleased to present 
the financial results for the year ended 31 december 2009
these results again demonstrate the resilience of our brand the 
breadth and depth of our product offering and our increasing 
geographic reach in what was a challenging year for all consumer 
facing businesses 
financial results and dividend
total operating income ‘toi’ decreased 6 to us247 million 
2008 us263 million impacted by difficult trading conditions 
and unfavourable exchange rates ebitda was us46 million 
2008 us56 million our financial position remains strong as 
ever due to the continued cash generative nature of the business 
our cash position as at 31 december 2009 was us875 million 
31 december 2008 us984 million the board is therefore 
recommending a final dividend of 30 cents per share in addition to 
our interim dividend of 10 cent per share and special dividend of 26 
cents per share both paid in october 2009
we are in a strong position to take advantage of the ongoing 
industry consolidation and will participate in ma opportunities as 
and when they become available
b2c
888 is more than just a place that offers a first class online gaming 
experience to its players it is fast becoming an entertainment 
destination a place where people can enjoy a truly interactive 
experience and be part of an online community that shares common 
interests 
we continue to innovate across the range of our offering providing 
players with a dynamic gaming experience cutting edge products 
such as live dealer targeted at european customers are growing 
in importance and a constantly updated suite of instant games 
integrated across the portfolio helps to keep customers coming back 
to the site with increasing spend localisation remains a core focus 
for 888 as we deliver regionally targeted and appealing content in an 
increasing number of languages
 before share benefit charges of us7 million 2008 us8 million
during the year we also made a significant change to the 888 brand 
architecture as well as our continuous drive to provide the best offering 
and customer service possible the look and feel of our umbrella brand 
has been updated and we have refocused our subbrands to reflect 
the four core gaming products — 888casino 888poker 888sport and 
888bingo the new sites were launched in early 2010 and have proved 
popular with both existing and new players
the acquisition of the wink online bingo business added to our 
tremendously successful emerging offering and the relaunch of reef 
club casino introduced a product ideal for the recession helping 
888’s casino segment to retain a market leading position
dragonfish
early in the year we rebranded and relaunched the b2b business 
as dragonfish crystallizing its position as a standalone but 
complementary part of the group the dragonfish brand is highly 
visible and has achieved significant cutthrough in the competitive b2b 
market a number of new agreements were signed during the year 
significantly in september we signed a landmark deal with harrah’s  
international entertainment to provide services to its nonus facing 
customers marking the first ever b2b deal with a major us casino 
operator
the signing of a partnership with linden lab
®
 for payment service 
provision extends our reach outside the online gaming market for the 
first time
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responsible gaming and csr
responsibility has always been a cornerstone of our business the 
importance of responsible gaming and corporate responsibility was 
illustrated through the publication of our first standalone corporate 
responsibility report which is available on our dedicated website 
www888responsiblecom 
the group was saddened by the untimely passing of one of its 
founders dr aharon shaked late last year aharon continued to 
contribute his wisdom and advice to 888 throughout his illness and 
our thoughts and prayers are with his family
in december shay benyitzhak one of the founders of the 
business decided to step down from the board to devote more 
time to his family on behalf of the board and all staff i would like 
to express our appreciation of shay’s contribution in growing the 
company from its infancy and his continuing contribution to date we 
wish him all the best for the future
i would also like to add my thanks to all our employees who have 
worked hard to drive the performance of the business in a challenging 
operating environment
outlook
2009 was a testing year but we have continued to drive growth 
in both our b2c and b2b businesses organically and through 
acquisition
as the economy moves on from the global financial crisis the wider 
online gaming industry can look to the future with confidence the 
strength and diversity of our offering leaves us well positioned to 
continue to create sustainable value for our shareholders
the board remains confident about the prospects for the business
richard kilsby
chairman
 
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annual report  accounts 2009
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chief executive officer’s review 
introduction
while the economic backdrop remained hostile and continued to 
impact performance both in terms of trading and fluctuating exchange 
rates 2009 was the year that validated the strength of the group’s 
combined business model a world class b2c operator and an 
innovative and comprehensive b2b service provider
during the first nine months of the year our b2c business remained 
under pressure from the challenging economic environment the 
fourth quarter of 2009 saw a welcome return to more normalised 
trading with much stronger performance our standalone b2b 
business which was branded dragonfish in march 2009 continued 
to show good growth with a number of new strategic deals signed 
including an agreement with linden lab operator of second life for 
payment processing and an agreement with bwin italia for casino 
tailored for the newly regulated italian market 
throughout the period we maintained investment and innovation 
in both divisions using our working capital wisely and as you will 
see from the look and feel of this annual report creating a new 
corporate identity and refreshed subbrands for our b2c offering 
now launched to our customers 
from a financial perspective in spite of the difficult environment we 
have delivered a solid performance total operating income was 
us247 million 2008 us263 million with 33 increase in toi in 
b2b ebitda was us46 million 2008 us56 million the business 
remains highly cash generative and as at 31 december 2009 our cash 
position was us875 million 31 december 2008 us984 million 
 before share benefit charges of us7 million 2008 us8 million
business overview
our strategy is underpinned by a number of core objectives
l  maintain and improve our position as a leading b2c operator
l  become a leading b2b provider with a focus on new entrants 
and major opportunities
l  make strategic b2c and b2b acquisitions to enhance our 
market position
l  position ourselves to benefit from market trends and regulatory 
changes
l  remain the most responsible company in the sector
these are the building blocks of our business and we are committed 
to delivering a strong performance in each of these areas
b2c
whilst the market for our b2c business remained challenging we 
retained our focus on innovation to ensure our offering remains at the 
forefront of the gaming experience this included exciting visuals 
increased interactivity more community focus and a new customer 
loyalty programme we also introduced a number of ‘recession 
busting’ promotions and products giving our customers the 
opportunity to be entertained whilst being sensitive to their spending 
capacity thus increasing their ‘entertainment value for money’
following the success of 888ladies our ukfocused bingo 
offering we introduced new social networking features which 
make the playing environment more social such as enhanced chat 
experiences and daily blogs
under the leadership of the b2c managing director the business 
has taken on a new focus leveraging new products and marketing 
campaigns to deliver further growth 
a new bingo tv campaign was launched in the uk to stimulate 
bingo growth the innovative ‘poker ashes’ tournament was 
launched and televised featuring celebrities such as shane warne 
and darren gough in support of this a largescale poker league 
was launched in hundreds of pubs 
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a live casino product targeted at european customers was launched 
during the first half of 2009 and includes roulette blackjack 
and baccarat following extensive customer consultation a new 
poker version was rolled out incorporating 25 features and design 
changes and we also introduced a new ‘best of breed’ poker loyalty 
programme
888sport while still a nascent business unit for us continued to 
gather momentum during the year we introduced a new inplay 
betting application as well as an innovative video stream feature 
promoting our most popular events all assisting in driving additional 
growth to the domain 
in december we acquired the wink online bingo business the 
transaction marked a further expansion of our emerging offering 
segment and is invaluable in helping to support our domination of the 
online bingo industry wink bingo runs several online bingo networks 
including winkbingo poshbingo and bingofabulous the network is 
operated on the dragonfish bingo infrastructure and had over 60000 
active players at the time of acquisition making it one of the most 
popular sites for online bingo in the uk
in the third quarter of 2009 we began a restructuring and rebranding of 
our consumer offering following a comprehensive branding study it 
became clear that we needed differentiated subbrands for each product 
we carefully researched how we could launch a new streamlined 
distinctive and digital modern look without alienating our players and with 
the potential to attract thousands of new ones the decision was taken 
to build on the strength of the 888 brand and enhance its visual display 
while also promoting four key b2c subbrands with a reinvigorated look 
and feel — 888casino 888poker 888bingo and 888sport
dragonfish
in march we reached an important landmark in the transformation of 
our b2b business launching it under its own brand — ‘dragonfish’ 
this standalone brand is indicative of 888’s intention to become a 
major player in the b2b market highlighting dragonfish’s status as an 
independent business unit within the 888 group and emphasising its 
difference from our traditional b2c offering
‘total gaming services’ is the strap line that underpins dragonfish’s 
unique positioning our clients are given the opportunity to benefit 
from the advantage of our comprehensive endtoend service global 
reach resources and contacts and specific experience across local 
markets this comprehensive offering unique to dragonfish is built 
on our extensive experience as an operator and as such is a major 
differentiator from other b2b providers 
dragonfish has its own managing director who is responsible for all 
b2b activities these include business development programme 
management  integrations client executives unit client marketing  
operations b2b marketing and pr and b2b finance this structure 
as a standalone unit ensures that the confidential separation between 
the two activities is retained 
a number of deals were signed during 2009 some of which have 
opened up new territories for us as referred to below
phumelela in south africa where we will be providing a 
comprehensive sportsbook offering poker and casino in the balkans 
with loper gate and with probability to develop and execute 
opportunities for mobile gaming and mobile lottery services in a 
number of territories including china and south and central america 
in september we signed a landmark deal with harrah’s international 
entertainment to provide services to its non us facing customers 
marking the first ever b2b deal with a major us casino operator 
during the year we also announced three new bingo partners 
moonbingo bingohollywood and costa bingo cementing our 
position as a global leader in the provision of bingo services 
in november dragonfish signed an epayments deal with linden lab 
an agreement which extends our offering of total gaming services 
into total payment services and highlights the increasingly diverse 
nature and strength of dragonfish’s operations we have various 
existing and potential gaming partners interested in our epayment 
solutions demonstrating this giant step beyond our core operations 
into the retail environment 
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annual report  accounts 2009
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chief executive officer’s review
continued
people 
key to the sustainable success of our business and in turn the 
delivery of shareholder value is the continued development of our 
team who have once again delivered these excellent results
looking around the group today i am most encouraged by our 
significant and growing pool of talented employees our leadership 
and development programmes are designed to support employees 
at all levels from senior managers to those who are at an early stage 
of their career
we remain committed to enable our employees to fulfil their potential 
and share in the group’s success
we believe we have engendered the right culture within our 
business and we are committed to our corporate values leadership 
innovation excellence customer centricity collaboration and caring 
all of which helped us withstand the tough trading conditions 
throughout the year 
late last year 888 mourned the passing of one of its founders dr 
aharon shaked aharon was a committed and passionate supporter 
of 888 and we shall miss his unique contribution in the future 
development of the company
regulation
888 as a regulated and responsible company is constantly reviewing 
actual and potential changes in the online gaming regulatory regime 
all over the world this serves both to allow the company to pursue 
any possible opportunities to seek receive and operate under 
local licences as well as to guide decision making in relation to its 
existing operations especially in europe the company is pursuing 
licensing possibilities in italy where the 888 group already holds a 
licence france and other jurisdictions in addition 888 is looking 
into potential licensing opportunities outside europe we believe 
that the online gaming industry is making big strides towards 
being fully regulated in an increasing number of jurisdictions in 
an unparalleled manner which will change for ever the industry 
landscape the unique position of 888 makes it well placed to take 
advantage of these changes
responsible gaming
as we state constantly at 888 playing is not just a matter of 
entertainment — we take our play very seriously 
entertainment is our core business and it has an impact both 
on the people who enjoy it and the environment in which it 
operates conducting our business responsibly is fundamental 
to the sustainability of our business and its future success with 
responsibility comes transparency and we believe that transparency 
is created through communication and so as part of that we took 
the decision to share the way we conduct our business with all our 
stakeholders during the year we published our first standalone 
corporate responsibility report ‘peopleplanetplay’ while we 
recognise that we still have much to achieve we are committed to a 
proactive policy of corporate and social responsibility that reflects the 
high professional and ethical standards we have set for ourselves
888 is committed to provide responsible gaming products that 
comply with the highest standards of gaming safety security and fair 
practice that exist globally we regularly collaborate with external and 
regulatory bodies who guide us on all aspects of responsible gaming 
for more details see our website httpsafe888com
our own dedicated responsible gambling website 
888responsiblecom provides a full guide to responsible practices 
and is a source of practical support for all those involved in gaming 
or those who seek to understand the gaming environment we are 
most proud of our work in this area and will continue to see it as a 
key element in creating a sustainable growing business 
our 2010 focus
we aim to grow our b2c business through various strategic 
initiatives including the rebranding and refocusing around products 
we expect further expansion of our geographical footprint largely 
led by the anticipated regulatory changes that the industry is facing 
offering us a much more favourable environment for years to come 
in casino our strategic goal is to maintain our dominant market 
leading position by continuing to offer the right variety of products 
and we want to capture as many customer segments as possible in 
pursuit of this goal we will integrate more products and continue to 
enhance the customer experience introducing innovative products 
such as a 3d virtual casino 
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as regards our poker business we will continue to focus on product 
innovation and customer needs and will be launching a major 
upgrade to our gaming environment and player experience later 
this year we will also be introducing various features designed 
to enhance the online pokerplaying experience beyond what is 
available today aiming to attract a bigger audience to our offering
we will aim for greater focus on acquiring new players to our sports 
offering promoting additional events and investing more in brand 
recognition in specific countries we will present unique features as 
well as exclusive promotions around the main sports events of the 
year — led by the football world cup 2009 was the year in which 
sport betting became a real revenuedriver for us we plan to build on 
these achievements and grow our market share in 2010
bingo will remain a key growth area for us especially following the 
acquisition of wink bingo and we will focus on penetrating new 
geographies throughout the year bringing the message of bingo to 
many new customers worldwide 
for dragonfish 2010 will see a continuation of the successful 
growth strategy focusing on regulated markets and integrating a 
number of new products and services to deliver strong organic 
growth for partners whilst targeting new partners with the total 
gaming services proposition we feel that we have a unique offering 
unparalleled in the market and will continue to seek major new 
deals throughout the year the year will also see ongoing activity 
with our current partners who will enjoy a variety of new games and 
capabilities that will assist them in growing their own businesses 
dragonfish’s first independent global payments agreement with 
linden lab will also be launched in 2010 followed by additional 
payment processing management agreements
outlook
in conclusion in 2009 we made significant progress in a challenging 
environment our strong business fundamentals and successful 
growth strategy are the basis of our longterm sustainability
we will continue to drive further organic growth leveraging our 
enhanced geographic footprint and our dual business model in 
parallel we also remain committed to further acquisitions as part of 
the ongoing industry consolidation and also achieving our strategic 
goals 
while 2009 was challenging the overall market is on a growth 
trajectory casino continues to grow and bingo has significant 
growth potential especially outside of the uk while poker remains 
challenging we remain excited that sportsbetting is still a major 
opportunity for us last but not least dragonfish presents significant 
additional growth opportunities which we plan to exploit both in the 
total gaming and total payments environments 
financially and operationally we have a strong platform to grow our 
businesses further and look forward to continuing to provide all our 
stakeholders with value both now and in the future
gigi levy
chief executive officer
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annual report  accounts 2009
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enhanced business review 
financial results
general
our financial results in 2009 especially during the first three quarters 
were adversely impacted by both the economic downturn and adverse 
currency movements total operating income declined 6 to us247 
million 2008 us263 million ebitda was us46 million 2008 
us56 million profit before tax was us35 million 2008 us49 
million and basic earnings per share was 92¢ 2008 134¢
the group continued to be highly cash generative with net cash
generated from operating activities of us41 million 2008
us56 million and its financial position remains as strong as
ever with cash and equivalents at year end at us88 million and
no debt 
geographical segmentation 
the group’s revenue stream is well diversified across geographies 
with the uk remaining the largest single jurisdiction the table below 
shows the group’s geographic revenue distribution
financial summary 
   year ended year ended
   31 december 31 december
   2009
1
  2008
1
    million  million
revenue
b2c
 casino  1187 1331
 poker  516 716
 emerging offerings  251 138
 other operating income  — 55
total b2c  1954 2240
b2b  513 386
total operating income  2467 2626
operating expenses
2
  899 773
research and development expenses  241 274
selling and marketing expenses  673 802
administrative expenses
34
  198 220
ebitda
134
  456 557
finance income and exchange gainslosses  25 03
depreciation and amortisation  85 73
profit before tax
4
  346 486
1
 rounded
2
 excluding depreciation of us70 million 2008 us55 million and amortisation of us15 million 2008 us18 million
3
 excluding exchange rate loss of us27 million 2008 us26 million
4
 excluding share benefit charges of us70 million 2008 us84 million
 before share benefit charges of us70 million 
2008 us84 million
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in 2009 888’s turnover grew 36 in rest of world while all other 
reported geographic markets showed decline 7 in uk and europe 
excluding uk and 27 in the americas excluding usa the relative 
size of the uk and europe excluding uk remained stable at 37 
and 46 respectively
expenses
during 2009 the group continued its investment in infrastructure 
as required to propel its b2b capabilities while continuing the 
development of its b2c offerings
operating expenses which are mainly salaries chargebacks and 
payment service providers’ commissions totalled us984 million 
2008 us846 million representing 40 of total operating 
income 2008 32 salaries and benefits representing the 
largest component of operating expenses were us455 million 
2008 us403 million reflecting an increase of 13 as a result of 
continued investment in building up the b2b business chargebacks 
increased significantly during the year to us90 million 2008 
us48 million as a result of industrywide concerted fraud 
attacks since q2 2009 888 responded to these by adopting new 
processes and procedures which resulted in a significant reduction in 
chargebacks starting in november and continuing to date
during the year the group established a new outsourced lowcost 
development centre in ukraine while the number of development 
staff employed and outsourced increased during the year 
development expenses were reduced to us241 million 2008 
us274 million the reduction was driven by more costeffective 
workforce benefited from the new outsource local development 
centre which was established in late 2008 in ukraine and partially a 
result of a favourable exchange rate movement
marketing expenses driven almost exclusively by b2c activities 
were us673 million 2008 us802 million representing 27 of 
b2c total operating income 2008 31 
administrative expenses at us225 million 2008 us246 million 
in 2009 the group continued optimising cost per acquisition across 
various customer recruitment channels during the year 888’s  
marketing team recruited more than 206000 new casino and poker 
first time depositors from more than 11 million 2008 093 million 
new real money registrations with an average cost per acquisition in 
2009 of 177 2008 232
 excluding share benefit charge
total operating income by geographical market 
 year ended year ended
 31 december 31 december
 2009  2008 
total operating income  million  share  million  share
uk  904 37 971 37
europe excluding uk 1137 46 1220 46
americas excluding usa 191 8 262 10
rest of world 235 9 173 7
total 2467 100 2626 100
 rounded
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annual report  accounts 2009
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enhanced business review
continued
share benefit charges
as part of 888’s commitment to invest in human capital eligible 
management and employees receive equity awards under the 888 all 
employee share plan ‘share plan’ in 2009 the group continued to 
award shares and options to employees under the share plan the 
noncash charge for 2009 was us70 million 2008 us84 million 
comprising a us11 million charge relating to grants in the current 
year 2008 us22 million and us59 million 2008 us62 million 
relating to grants made in the past
finance income
while the group continued to generate and retain cash surpluses 
throughout the year net interest income was only us02 million 
2008 u30 million reflecting unprecedented low interest rates
profit and earnings per share
ebitda
ebitda was us46 million 2008 us56 million ebitda margin 
was 185 2008 212 
taxation
the tax charge for 2009 was 27 million 2008 31 million 
reflecting the group’s efficient tax position
earnings per share
basic earnings per share were 92¢ in 2009 2008 134¢
 
 before share benefit charge
dividend 
the group’s stated policy is that it intends to make an annual 
dividend payment representing 50 of net profit but the policy 
would reflect longterm earnings and cash flow potential of the 
group given the performance in 2009 the board is recommending 
a final dividend of 30 cents per share in addition to the interim and 
special dividend paid in october 2009 
cash flow
the group’s strong profitability during the year was matched by 
strong cash generation with net cash generated from operating 
activities reaching us415 million 2008 us564 million 
during 2009 the group made cash payments of us300 million 
2008 us367 million in respect of business investment activities 
including us18 million in respect of the acquisition of the wink 
online bingo business the group paid us224 million 2008 
us256 million in dividends to its shareholders consistent with its 
dividend policy
balance sheet 
the group’s balance sheet remains strong it has no debt and 
retains ample liquid resources the group’s cash position as at
31 december 2009 was us875 million 31 december 2008 
us984 million this strong position allows the group to take 
advantage of suitable acquisition opportunities in the consolidating 
market
balances owed to customers were us376 million 2008 us333 
million the group maintains 100 cash reserves equal to this 
liability which would permit immediate withdrawal of all customer 
deposits at any time in the extremely unlikely event this was 
necessary
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b2c
it has always been 888’s goal to be the market leader in the global 
online gaming industry in order to achieve this it is vital to offer 
an exceptional gaming experience that appeals to a wide range of 
consumers — from the experienced poker player to casual sports 
fans and people who enjoy a game of bingo
888 is more than just a place where people go to play online 2009 
saw an increase in the focus on creating online entertainment 
destinations where players can combine an unparalleled gaming 
offering with a more complete internet experience including social 
networking and personalised activities 
the goal is for people to see 888 as a brand beyond gaming and an 
integral part of their online entertainment experience by fulfilling this 
wider role in the online lives of players building emotional ties with 
players and increasing their engagement with the brand builds loyalty 
thereby helping to improve customer retention and spend
branding 
as the online gaming industry has evolved it has become 
increasingly important to offer all four core gaming products — 
casino poker bingo and sport historically the four segments have 
been marketed as distinct brands to targeted audiences with cross
selling opportunities being utilised where possible 
in 2009 the decision was taken to streamline the 888 brand focus 
and rebrand core products as being distinct but complementary 
parts of the wider 888 brand with a reinvigorated look and feel and 
unified logos the brands all speak with one language and link into 
one offering the new sites were launched at the beginning of 2010 
as 888casino 888poker 888bingo and 888sport all under the 888
com umbrella brand
creating brand continuity allows the new sites to leverage the 
strength of the 888 brand and greatly increase the 888 ‘share of 
voice’ the multiproduct offering and subbrand strategy also 
increases the effectiveness and efficiency of marketing and search 
engine optimisation strategies while crossselling potential improves 
due to a powerful familiarity between the sites 
 
888ladies will continue to be the leading bingo site in the uk market 
targeting the female population while pacific poker and casino
onnet will remain as additional standalone brands and important 
aspects of the b2c portfolio the december acquisition of the wink 
online bingo business added other leading brands to the b2c 
offering — wink bingo posh bingo and bingo fabulous all of which 
had previously performed well on the dragonfish network
adi sofferte’eni
b2c managing director
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annual report  accounts 2009
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enhanced business review
continued
developing the offering
online gaming continues to evolve and 888’s offering continues to 
innovate and change with it in order to remain at the forefront of the 
online gaming experience 
888 is a truly global gaming destination with localised offerings 
providing players in different geographies with games that appeal to 
them in the language that they speak the 888 gaming experience 
is now available in a total of 23 languages four new languages 
were added in 2009 as 888 supported growing demand in eastern 
europe 
as part of tailoring the offering to satisfy the demand of today’s 
discerning players we launched the innovative live 888casino 
in june allowing players to have a ‘las vegas style’ live gaming 
experience in the comfort of their own home a live video stream with 
a personally chosen dealer provides a choice of roulette black jack 
and baccarat results in this area have been very encouraging 
live dealer was an important part of the new nodownload casino 
which launched in may 2009 the nodownload casino uses flash 
games that can be accessed through web browsers such as internet 
explorer or firefox rather than downloading any form of software 
the offering of instant online games removes the barrier to entry 
brought about by the hardship of extra time and effort to download 
software
as well as innovative new features constant improvements continue 
to provide a fresh and exciting gaming experience 888 continues 
to offer a wide range of instant games across the b2c network 
as games were added in 2009 these included games with iconic 
brands such as cluedo and spiderman instant games have 
proven a popular addition in bingo a new integration platform was 
completed allowing rapid game deployment the speed to market 
of these games provides the opportunity to capitalise on trends 
and target offerings to interest and excite customers 11 new side 
games have already been integrated the successful xfactor game 
launched at the beginning of the popular show’s run in november 
supported through exclusive promotions is a good example of the 
timely introduction of a tailored product 
the increasing popularity in quickplay games led to the launch of 
888games initially launched on 888sport in july 888games provides 
the opportunity to play instant win games whilst browsing the site 
improving the gaming experience and time spent on the site as well 
as increasing customer spend 
888games has since been launched as a standalone site with 60 
varied games with more released continuously games range from 
scratch cards to video slots and virtual sports as the rebranding 
of the core offering is completed 888games will benefit from 
crossselling traffic arising through players looking to enjoy a more 
instant gaming proposition in addition a further casino brand was 
introduced as reef club casino was relaunched in august in 
both english and german reef club casino with a low minimum 
deposit limit and high bonus offering provided an inviting gaming 
environment which was well positioned at the height of the recession 
when many players were looking for a lower spend alternative and 
continues to offer an alternative experience
the poker offering also benefited from the addition of new features 
a quick seat for beginners allows novices to pick up the basics in a 
free play environment while private tournaments the ability to export 
hand histories and rematch tournaments give more experienced 
players a more satisfying poker experience 
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beyond gaming
888ladies has been a pioneering website not just in its combination 
of a leading gaming product with a wealth of interactive features but 
in the creation of a real online community 888ladies goes beyond the 
core bingo product to provide players with a welcoming environment 
in which to interact with likeminded friends regular promotions 
both online and offline increase ties with players and provide 
incentives to visit the site frequently 
promotions ran throughout the year including opportunities to 
win tickets to the soap awards at easter and calendar themed 
promotions for valentine’s day mother’s day and halloween
however it is the social features that set 888ladies apart the 
888ladies blog receives hundreds of visitors every day with 
community features leading to genuine interactivity and goodwill 
towards the brand utilising social media through providing daily 
communication and realtime promotions further increases brand 
engagement a fan page on facebook and a regularly updated 
twitter page have both been developed and are great successes 
we will further develop the utilisation of social media and brand 
interactivity across additional areas of the b2c offering in 2010 
promotions
the economic environment in 2009 was the worst it has been since 
the advent of online gaming and indeed well before that customer 
acquisition conditions were therefore usually tough it was important 
to offer new players compelling reasons to open accounts with 888
introductory offers in casino included an immediate welcome bonus 
of 100 on a first deposit of up to 200 and a welcome package 
with a value of up to 1400 other offers were specifically targeted 
for the recession promotions included the chance to win a year’s 
salary or a dream holiday while lowering the deposit limit to £25 
fulfilled players need to continue playing with smaller stakes
the largest promotion in 2009 was the £8888888 campaign which 
offered the chance to use three free spins to win the biggest 
online jackpot of all time the campaign appealed to players across 
the spectrum — including new registered and high value players 
vips and inactive players the promotion was supported by a 360 
degree marketing drive across all media outlets including direct 
mail television online and prominent public advertising and also by 
search engine optimisation and crossselling from 888 sites
offline marketing
888 continued to seek out groundbreaking and timely offline 
marketing opportunities to build brand awareness amongst key 
demographics and to drive online traffic
leo margets the international female poker icon and the last woman 
standing at the wsop 2009 signed a 2year contract with 888 and 
will spearhead the 888 ambassador programme leo has generated 
enormous media coverage appearing in over 150 publications most 
notably on the front cover of el pais semanal — the most important 
magazine for the spanish audience 
2009 was the second year of 888’s partnership with shane warne and 
he continues to represent 888 at highprofile poker events such as the 
888 poker open the aussie millions and the world series of poker also 
in 2009 the 888 poker ashes tv show was also launched in 2009 to 
coincide with the cricket ashes series in the uk and was broadcast 
after the cricket each day on sky sports moving the traditional rivalry of 
england and australia from the cricket pitch onto the poker table led to 
one of the most successful poker television shows ever the 201011 
cricket ashes series this time in australia will see the second season of 
the 888 poker ashes
as the opposing countries squared up in the poker ashes players could 
join and represent their country online 100 welcome bonuses up 
to 400 offered an extra incentive to become an 888 player and was 
amongst the most innovative promotions in the poker industry in 2009
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annual report  accounts 2009
17555 30032010 proof 11
14
shane warne extended his partnership with 888 in january 2010 
and he will continue to represent 888poker and other 888 brands 
internationally
888poker has partnered with an offline poker league and clubs 
throughout 2009 taking the 888brand directly to players the 888 poker 
league was first formed in may and rolled out in over 200 venues 
offering the opportunity to play with shane warne in the final 
customer relationship management
strong customer relationships are the bedrock of our success 
whilst eyecatching promotions help to drive customer acquisition 
customer retention comes from engendering loyalty through building 
bonds with players this leads to people playing more games more 
often for more time 
888’s ongoing commitment to localisation strengthens relationships 
worldwide through speaking to people in their language and culture 
while the marketleading usage of social features and interactivity 
with players strengthens brand loyalty this loyalty is also gained 
through 888’s loyalty plans which form an important aspect of the 
customer relationship in 2009 888 launched a new poker loyalty 
plan considered one of the best in the sector
the vip offering remains the best in the industry vip members get 
unparalleled customer service with personal loyalty managers on call 
24 hours a day to deal with any enquiries quickly and easily exclusive 
promotions and more cashback and bonuses also mean that 888 vips 
receive a best in class product with best in class service 
in 2009 86 separate vip promotions offered attractive gifts bonuses 
and tickets to one of the 46 offline events held in nine different countries 
search engine optimisation 
‘seo’
the specialist search and web optimisation technologies ‘swot’ 
team continue to give 888’s websites prominence on worldwide search 
engines maximising the impact of the product offering successful use 
of swot has helped to drive players to 888 brands helping customer 
acquisition and the ongoing growth of 888sport and 888ladies 
in the uk 888 sites come out on top of google searches for 
‘casino’ ‘online casino’ ‘online blackjack’ and ‘poker’ this 
positioning is replicated across core markets 
888’s continuing focus on seo will be a key driver in the success of 
the rebranded core 888 offerings
2010 focus
2010 has started well with a number of strategic initiatives in the 
pipeline including the completion of the rebranding and refocusing 
around core products and further expansion of the geographic 
footprint 2010 is set to be a year of growth
in bingo the aim for the year is to become a truly global operator 
with penetration in a number of new countries in the uk we will 
build on the success of 888ladies with the 888bingo offering which 
appeals to a wider gaming demographic the acquired wink bingo 
business also provides an opportunity to further increase market 
share in the growing uk bingo market
the focus in casino will continue to be on offering the right variety 
of products appealing to the widest range of consumers so as to 
maintain the casino offering’s market leading position in poker 
the strategic goal is to differentiate the offering by identifying and 
fulfilling a significant customer need that has not yet been answered 
this will be achieved through the creation of a brand positioning that 
is based on such unique product that customers need
targeted marketing campaigns in 2009 saw 888sport grow from 
being mainly a tactical business relying on crosssell into an 
important contributor to the group 888sport’s growth in 2010 will 
continue through promoting additional events and investing in brand 
recognition in specific countries
enhanced business review
continued
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separate vip promotions offered attractive gifts bonuses 
to one of the 46 offline events held in nine different countries 
h engine optimisation 
’
st search and web optimisation technologies ‘swot’ 
inue to give 888’s websites prominence on worldwide search 
maximising the impact of the product offering successful use 
as helped to drive players to 888 brands helping customer 
and the ongoing growth of 888sport and 888ladies and th
come out on top of google searches for 88 sites com
ino’ ‘online blackjack’ and ‘poker’ this nline casino’ 
d across core markets is replicated acro
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dragonfish
2009 has marked a period of significant growth for the b2b division 
with 33 growth over 2008 growth has been achieved organically 
through the provision of new product and service initiatives that have 
helped dragonfish’s existing partners expand their market share and 
through the signing of a number of key new partners 
in march 2009 888 took the decision to brand the rapidly expanding 
independent b2b division as dragonfish crystallizing the division’s 
separate function in 888 and signifying its evolution into a major 
player in the b2b market a strong leadership team was established 
to drive the expansion of the business with departments covering 
sales  business development programme management  
integrations client executives unit client marketing  operations 
b2b marketing  pr and b2b finance the combination of these 
teams ensures dragonfish can provide an outstanding b2b service
the creation of the dragonfish identity was supported with an 
international advertising campaign in key publications visibility at 
major trade shows and through targeted pr achieving exposure 
across all trade publications and in overseas gaming markets 
the brand has already achieved significant cutthrough in a 
competitive market and dragonfish is now one of the largest 
providers in the b2b sector with a broad cross section of partners 
across all core gaming segments and numerous geographic regions 
new partners were retained in 2009 as strategic agreements were 
signed with amongst others linden lab and bwin italia 
dragonfish’s goal is to become the major provider of games  
technology marketing services operations and epayments 
to companies that both lead the egaming market or require an 
experienced partner for entry into the sector 
new entrants to the online gaming market require diverse gaming 
content a technology platform to work with expertise in setting up 
operations and above all knowledge of how to leverage their assets 
and target the gaming consumer 
dragonfish’s services help partners optimise the player experience 
and maximise customer lifetime value utilising over a decade’s 
experience in the online gaming industry dragonfish is able to offer 
clients a unique endtoend proposition — total gaming services 
this strapline reflects the opportunity for clients not only to benefit 
from 888’s gaming portfolio and experience in technology 
operations and epayments but also utilise advanced marketing 
services from the provision of offlineonline marketing management 
of affiliates and search engine optimisation to customer relationship 
management crm and business analytics industry leading 
backoffice systems including operational risk management 247 
customer support and chat hosting services complete the offering 
dragonfish is able to provide clients with broad and customisable 
solutions for all of their gaming needs they can utilise the complete 
white label solution or select from individual components to 
complement and enhance their own existing gaming offering all 
solutions can be tailored for local markets with dragonfish currently 
providing services in more than 20 languages the provision of a 
dedicated team and market leading technological infrastructure allow 
solutions to be both comprehensive and timely
gabi campos
dragonfish managing director
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annual report  accounts 2009
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17555 30032010 proof 11
enhanced business review
continued
utilising dragonfish provides a gateway to a huge suite of successful 
games in a variety of languages allowing rapid entry into emerging 
markets dragonfish provides hundreds of games with turnkey 
integration capabilities plus the experience and expertise to 
customise game suites games can be seamlessly integrated 
through the advanced integration platform allowing constant 
upgrades increasing player retention and maximisation of customer 
lifetime value 
total payment services
the unique total payment services offering combines payment 
optimisation technology and fraud management including anti
money laundering services with 247 multilingual customer 
operations that assist customers’ deposits both reactively and 
proactively 
dragonfish has over a decade of experience in global payment 
processing and works with a variety of trusted payment partners 
a rich portfolio of local and global payment methods enables 
dragonfish to maximise transaction approval rates and provide the 
platform for partners to rapidly penetrate new markets 
with the support of a highly experienced fraud and risk management 
department dragonfish’s epayment solutions are both customer 
friendly and extremely secure
in november an agreement was signed with the world’s leading 
virtual world technology company linden lab the creator of 
second life to provide epayments fraud and customer support 
management services this collaboration represented an extension of 
dragonfish’s offering beyond the gaming industry into the wider retail 
environment and signified its emergence as a strong player in the 
regulated payment services market
partners
dragonfish now works with egaming companies media portals 
offline casinos and pools operators helping them all to maximise 
their online revenues and fulfil the potential of their brands 
a number of significant partnerships were signed in 2009 
dragonfish’s prime position to provide the ideal platform for 
international landbased marquee brands to enter the online arena 
was illustrated through the signing of an agreement with harrah’s 
to launch the internationally renowned world series of poker 
and caesars casino brands online this capability was further 
emphasised through the agreement with tsogo sun gaming group 
one of the largest hotel and entertainment groups in south africa 
also choosing dragonfish for their first move into online gaming 
the agreement with tsogo sun gaming group followed the 
announcement of a partnership with phumelela one of the world’s 
largest parimutuel horseracing and tote betting organisations to 
provide a comprehensive sportsbook offering in south africa this 
deal was an example of dragonfish’s ability to cooperate with 
companies who utilise government licensing and also indicates 
dragonfish’s strategy of obtaining firstmover advantage in newly 
regulated territories 
further international agreements were signed in 2009 
harnessing dragonfish’s multilingual offering and epayments 
expertise in emerging territories a partnership with loper gate 
launched poker and casino in the balkans enabling dragonfish to 
achieve significant penetration in this emerging market
dragonfish remains one of the leading providers of bingo software 
worldwide providing software to some of the biggest names in 
bingo including foxy bingo and mirror bingo dragonfish also runs 
one of the world’s leading bingo network with over 60 skins offering 
instant liquidity dynamic content and access to top tier brands 
this position was further consolidated during the year with the 
announcement that kamay holdings ltd owner of leading poker and 
casino sites luckyacepoker luckyace casino and suprocasino 
selected dragonfish as its bingo partner to launch silk bingo on the 
dragonfish bingo network the agreement marked the tenth new 
brand launched on the network in 2009 and complements the new 
standalone networks all powered by dragonfish
built for your 
online world 
technology operations marketing epayments
casino            poker               bingo              sport              quickplay
wwwdragonshtechcom 
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the games engine
technology that gives you insight
games that give you choice
wwwdragon	shtechcom
’0

Summary:
 www888holdingsplccom 
 
01
17555 30032010 proof 11
1   excluding share benefit charges of us7 million 2008 us84 million
2   excluding exchange rate loss of us27 million 2008 loss of us26 million
total operating 
income
247
263
2009 2008
down6
us million
total operating 
income — b2b
51
39
2009 2008
up33
us million
total operating 
income — b2c
195
224
2009 2008
down13
us million
total operating 
income — emerging 
offerings
25
14
2009 2008
up82
us million
real money 
registered customer 
accounts
71
58
2009 2008
up22
million
ebitda
12
46
56
2009 2008
down18
us million
ebitda margin
12
dividend
185
66
212
54
2009 2009 2008 2008
 
 
up22
us¢
highlights 
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