2312404   25 march 2014 624 am   proof 11
annual report  accounts 2013
stock code 888 888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
           is one of the world’s most popular 
online gaming entertainment companies
888 is one of the world’s most popular online 
gaming entertainment and solutions providers
888’s trusted brand offers localised products that provide 
players around the globe with the games they want in the 
languages they speak with functionality and interactivity in a 
safe and secure environment
888 has been at the forefront of the online gaming industry 
for more than 15 years with a team of 1600 highly skilled 
and dedicated staff we provide a first class online gaming 
experience to customers in more than 100 countries our 
industryleading business analytics identify the best way to 
deliver to customers the offering that will be of most interest 
to them and our bestinclass technology platform allows 
us to enter new markets efficiently and successfully as new 
geographies become regulated our ability to achieve such 
success in newly regulated jurisdictions in turn means that 
we are fast establishing ourselves as the partner of choice in 
both regulated and newly regulating markets 
888 is a responsible business and we work hard to ensure 
that our customers can enjoy our games in the safest and 
most secure possible environment we continue to innovate 
and exceed our customers’ expectations both in terms of the 
offering and customer service so that we can continue to 
grow the business and deliver value for our shareholders
888 holdings plc annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
highlights
94
88
2013 2012
7
us million
7
us million
revenue
revenue — 
b2c poker
401
376
2013 2012
76
67
2013 2012
7
us million
 13
us million
revenue — b2c
adjusted ebitda
1
352
330
2013 2012
189
178
2013 2012
5
us million
revenue — b2b
adjusted ebitda
1
 
margin
48
46
2013 2012
155
131
2013 2012
15
us million
19
million
revenue —  
b2c casino
real money registered 
customer accounts
2
190
165
2013 2012
overview
01  financial highlights
02  chairman’s statement
strategic report
03  chief executive’s review
 03  2013 overview
 03  market overview
 03  our strategy
 06  operations
09  cfo review
14  regulation
16   corporate responsibility
19   principal risks and 
uncertainties
governance
21   board of directors
22   directors’ report
26   directors’ statement of 
responsibilities
27   corporate governance 
statement
31    audit committee report
34   remuneration report
financials
49   independent auditor’s 
report 
53   consolidated income 
statement
53   consolidated statement of 
comprehensive income
54 consolidated balance sheet
55  consolidated statement of 
changes in equity
56   consolidated statement of 
cash flows
57   notes to the consolidated 
financial statements
89  company balance sheet
92   notes to the company 
financial statements
contents
1 
as defined in the table set out on page 9
2 
casino poker and sport
 
per cent
www888holdingsplccom
01
stock code 888
overview 2312404   25 march 2014 624 am   proof 11
888 holdings plc annual report  accounts 2013
“our goal is to deliver strong sustainable 
longterm earnings growth by maximising 
revenues and expanding margins”
richard kilsby chairman
2013 was a year of strategic development for 888 as we 
positioned ourselves to take advantage of significant 
opportunities as new markets became regulated and opened 
up to online gaming and highgrowth mobile channels 
developed this was underpinned by excellent momentum 
across our established business streams which delivered 
another record performance driven by our excellent customer 
offering and targeted marketing
the global online gaming market has dynamic growth 
characteristics providing 888 with multiple development 
opportunities given our ability to innovate international reach 
and industry leading technology platform these enable 
us to enter new markets quickly and effectively and focus 
our marketing initiatives highly efficiently in particular we 
continued to innovate in mobile with significant increases in 
revenue and new depositors achieved through this rapidly 
growing channel 
we have entered newly regulated markets in the us and 
continued to develop our successful operations in spain 
and italy during 2013 we completed a number of strategic 
partnerships which position us strongly in the emerging us 
regulated market our distinct approach gives us significant 
financial firepower to take advantage of this opportunity and 
we are encouraged by progress to date in nevada new jersey  
and delaware
financial results and dividend
2013 was another record year for 888 we increased revenue 
to a record level of us401 million of which 88 was from 
our b2c operations we continued to make significant 
investments in the future through product development and 
cost effective customer acquisition whilst increasing adjusted 
ebitda by 13 to us76 million 2012 us67 million and 
profit after tax by 41 to us50 million 2012 us35 million 
888 was highly cash generative during the year holding 
us116 million of cash and cash equivalents as at 31 december 
2013 2012 us82 million with us55 million liabilities to 
customers 2012 us49 million at 31 december 2013  
888 had 155 million casino poker and sport real money 
registered accounts representing a 19 increase from 2012
given the strong financial performance of the group the 
board is recommending a final dividend of 40¢ per share 
which together with the interim dividend equals 70¢ per  
share in accordance with our dividend policy and an 
additional oneoff 70¢ per share bringing the total for the  
year to 140¢ per share 2012 90¢ per share 
winning team
888 has world class talent with a team of more than 1600 
highly skilled and dedicated staff they are the driving force 
behind our success including the strong performance in 2013 
on behalf of the board i would like to thank all my colleagues 
for their excellent contribution and commitment to fulfilling 
the ambitions we have for the business
our values
our values and a strong culture are key to our success with 
a responsible gaming environment for our customers at the 
centre of all our endeavors we continuously create innovative 
ways such as our sophisticated observer system to ensure 
that all those who visit our site can do so with confidence and 
safety and that those for whom our games are not intended 
are not drawn into a gaming environment
outlook
888 has world class technology and products a truly 
international breadth of operations and a dedicated and 
expert team these are our key strengths as we continue to 
grow and unlock new market opportunities i am confident we 
have the right strategy to deliver a truly satisfying experience 
for our customers and strong sustainable longterm earnings 
growth for our shareholders
richard kilsby
chairman
 as defined in the table set out on page 9
chairman’s statement
02
888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
www888holdingsplccom www888holdingsplccom
  
“a recordbreaking year for 888”
brian mattingley chief executive officer
2013 overview 
2013 was a very busy but also exceptionally rewarding year 
for 888 i am delighted to report that we have delivered 
recordbreaking revenue increased our profitability remained 
highly cash generative and delivered greater returns to our 
shareholders through a 56 increase to the dividend 
our operational achievements in 2013 are equally impressive 
we continued to deliver product innovation ensuring that our 
customers are provided with the most enjoyable games in the 
safest possible environment we made further developments 
to our industryleading ‘smart marketing’ so that we are able 
to attract more players to the 888 brand and increase their 
life time value we delivered excellent progress in our core 
markets continued to develop our offering in italy and built 
on momentum in spain where we have quickly developed a 
leading market position we delivered another very strong 
performance in casino and made further market share gains 
in poker advancing to number two in the pokerscout global 
rankings at the year end 
all of this was achieved whilst devoting significant energy 
and resources to preparing 888 for launch in the us market 
i am incredibly proud to say that 888 is the only operator 
currently present in all three regulated states as we execute 
our strategy in what is potentially the largest online gaming 
market globally this remarkable achievement is testament to 
the strength of our product technology and marketing but 
also and most crucially the hard work dedication and talent 
of our team i would like to take this opportunity to thank 
each of them for their fantastic efforts during the year
i am delighted with 888’s achievements in 2013 and look 
forward to the year ahead with continued confidence 
market overview
the online gaming market is dynamic and fastgrowing 
growth over the coming years will continue to be driven by 
a combination of customers responding to innovative games 
that deliver a richer entertainment experience the growing 
use of mobile devices that improve accessibility increased 
confidence in secure lowcost payment mechanisms and an 
expanding customer demographic partly driven by regulatory 
trends that are opening up more markets to online gaming
it is forecast that the value of the global online gaming market 
will be approximately €315 billion by 2015 representing a 
cagr of more than 9 from 2012 this does not take account 
of the additional opportunities being opened up in the united 
states which represents a potentially massive opportunity 
for the industry nevada delaware and new jersey were 
regulated by the end of 2013 and other states are expected to 
make significant progress towards regulation this coming year 
as regulation continues analysts predict that the us could 
become the largest online gaming market in the world
in more mature markets such as the united kingdom  
we anticipate that there will be further consolidation  
given the advantages of scale brand and technology 
that larger operators can employ in a more competitive 
environment this trend will be reinforced by the planned 
introduction of a point of consumption tax in the uk due to 
take effect from december 2014 
online mobile gaming on portable devices such as tablets 
and smartphones is growing strongly reflecting consumers’ 
increasing comfort using their mobile phones and tablets for 
a wide range of products and services including banking and 
shopping  mobile devices will account for a much greater 
proportion of revenue as customers complement or replace 
their pcbased experience
our strategy
888 is one of the world’s most popular online gaming 
entertainment and solutions providers we have been at the 
forefront of the industry for more than 15 years by providing 
customers with market leading products that are localised to 
enable players to enjoy the games they want in the languages 
they speak in a safe and secure environment 
the group is structured into two business lines b2c with our 
market leading 888 brands and b2b conducted as dragonfish 
business this structure allows the group to leverage its 
technological product marketing and analytical strengths 
across b2c and b2b this maximises their benefits and allows 
888 to compete successfully with and surpass our competition 
in both established and newer markets 
  value of online gaming market in terms of gross win  
source h2 gambling capital 2014
chief executive’s review
stock code 888
03
www888holdingsplccom strategic report 2312404   25 march 2014 624 am   proof 11
there are clear opportunities in our global markets we are 
well placed to deliver growth across all areas of our business 
generating value for our shareholders as the wellestablished 
trend towards more international regulation continues and 
new technologies evolve our strategy to achieve this is made 
up of five key pillars  
growth and development of our core products
we are focused on the growth and development of our core 
product groups which are casino poker bingo and to a lesser 
extent sport where we work with a partner these products 
are delivered via our b2c offering under 888’s own brands 
and to our b2b clients through dragonfish 
‘bestinclass’ b2c offer
our b2c offering remains our core area and the bedrock of 
the success of the business we continue to invest in and 
focus on ensuring that we deliver an unsurpassed customer 
experience by developing bestinclass products maintaining 
excellence in customer service and ensuring we deliver a real 
valueformoney proposition to our customers this together 
with our advanced modeling and analytics competencies that 
underpin our product development and crm functions help 
us achieve our objectives to increase customer numbers 
further develop brand loyalty and enhance customer lifetime 
value 
partner of choice through dragonfish – our b2b offer
dragonfish is 888’s b2b arm which offers clients best in class 
total gaming services solutions that are tested vigorously to 
meet the regulatory requirements of the different jurisdictions 
where they are delivered the quality of our offering driven 
by our continuous investment in developing leading gaming 
platforms means that we are fast establishing ourselves as 
the partner of choice in both regulated and newly regulating 
markets this has been evidenced by the key strategic deals 
we have signed in 2013 alongside the deal we signed with 
caesars interactive entertainment in 2012 enabling 888 to 
become the only online gaming operator with a presence in all 
three regulated us states  
driving margin growth through operational efficiencies
we remain focused on improving our margins by maximising 
operational efficiencies and driving volume 2013 saw 
us continue to deliver progress in this area with further 
operational efficiencies driven across the business resulting in 
our adjusted ebitda margin improving to 189 2012 178
expansion in regulated markets
we are focused on developing our presence in locally 
regulated markets a key advantage of having our own 
technology product development marketing analytics and 
crm teams working closely together is that it allows us to 
control the key drivers for our success this ensures that we 
have the agility and skills to successfully and efficiently launch 
in newly regulated markets
2013 has seen us build further momentum in the european 
markets of the uk spain and italy and we are delighted 
with the progress we have continued to make building 
strong market positions especially in spain we classify the 
regulation of markets into three categories
chief executive’s review
04
888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
developmental – these are jurisdictions where there is a 
strong indication that at some time in the near future the 
market will open here we talk to local industry participants 
with a view to forming partnerships to jointly explore 
opportunities the us continues to be a primary focus 
for us and we believe our strong position in those states 
already regulated combined with our focused strategy 
and established partnerships position us well to take full 
advantage of the opportunities as regulation develops   
formational – these are markets where governments have 
announced regulation and are working towards a framework 
here we decide on a trading strategy start dialogue with 
local partners either for b2c or b2b tie ups and engage with 
regulators and governments to assist in shaping the industry 
framework 
implementational – these are markets where regulation has 
been introduced and we have already commenced trading 
in 2013 we made excellent further progress and built strong 
positions in both spain and italy both of which have recently 
regulated in the second half of 2013 we commenced 
operations in nevada delaware and new jersey in the us and 
have made good progress at this early stage
us development – strategy and current alliances
the us market is a demanding environment with strict 
regulatory requirements that vary from state to state however 
the opportunities are potentially vast
our successful launch in the regulated us market to date is 
testament to our product technology and marketing as well 
as the hard work dedication and talent of our team who have 
been able to meet the complex regulatory requirements in 
each state to pressing deadlines we have developed close 
working relationships with the various regulatory bodies in 
the us and these relationships along with the experience 
and skills we have developed to date mean that we are well 
positioned to exploit the us opportunity as further states 
open up to online gaming 
in march 2013 888 completed a major step in its us strategy 
by entering into a joint venture agreement with global 
investment firm avenue capital group through one of its 
affiliates to form aapn holdings llc aapn holdings was 
formed for the purposes of collaborating and capitalising on 
888’s and avenue’s respective strengths and competencies 
in order to carry out legalised internet based gambling 
operations in the united states pursuant to the agreement 
avenue committed to finance aapn and its affiliates while 
888 committed to provide its operational expertise services 
and software  in november 2013 one of 888’s subsidiaries 
received an authorization from the regulators in the state 
of new jersey that enabled it to begin provision of internet 
based gambling services in new jersey branded with the 
888poker and 888casino brands under the authority of the 
regulatory license issued to caesars interactive entertainment
our joint venture agreement crucially allows our us 
operations to make a positive contribution to group 
revenue from the moment we launched limiting our capital 
requirements and giving 888 the flexibility and financial 
capability to launch in more markets globally as they regulate 
stock code 888
05
www888holdingsplccom strategic report 2312404   25 march 2014 624 am   proof 11
operations delivering on our plans
success driven by technology leadership
technology leadership remains the foundation of and driver 
for 888’s continued growth and success our bestinbreed 
platform combined with industryleading back office systems 
and unique expertise in online marketing all underpinned 
by state of the art analytics developed over more than 
15 years delivers a powerful competitive advantage our 
technical edge and strong analytical capabilities together 
drive the success of our products from initial development 
right through to marketing and customer service as a result 
we are able to focus our resources on individual customers 
to ensure they enjoy the best possible customer experience 
whilst growing their lifetime value to 888 we have continued 
to enhance our comprehensive analytical tools over time 
including the development and addition of new features 
to our crm armoury allowing our marketing spend to be 
increasingly effective and resulting in positive customer 
conversion and retention trends
our consistency and leadership was recognised at the 2013 
egaming review operator awards when 888 was the winner 
in the prestigious poker operator of the year casino operator 
of the year and best operator of the year categories this was 
the third consecutive year 888 has won the poker operator 
of the year award a notable achievement that is testament 
to the strength of our platform and our relentless focus on 
continuous improvement and innovation 
continuous innovation
innovation is central to 888’s business and we have continued 
to invest in and develop our technology to maintain the 
delivery of bestinclass multiregulation multiproduct and 
multiplatform offerings
successful online gaming destinations offer customers safe 
enjoyable and innovative environments in which to play 
as online gaming evolves 888 is focused on innovating 
and developing at the fore of the industry to ensure that 
our players continue to be provided with the compelling 
and dynamic games that we are known for thus enhancing 
customer satisfaction and ultimately encouraging repeat 
visits 
as well as delivering continuous improvements across our 
core product verticals a key area of focus this year has been 
888’s mobile offering the increasing use of smartphones and 
tablet devices has resulted in mobile becoming one of the 
major engines of growth in online gaming the rapid rate of 
adoption and growth in players across this channel presents 
unique challenges and opportunities for the industry as 
operators develop their understandings of customer habits 
and profiles on this relatively immature platform 
888 has been quick to recognise the transformational nature 
of mobile for the online gaming industry in 2013 we focused 
significant resources and investment on developing our 
products and understanding of this increasingly important 
channel this has included the launch of new ios and android 
poker and casino apps during the course of the year along 
with a new and improved mobile bingo product which has 
shown good customer traction 
in 2012 we integrated our social gaming business into our 
technological organisation with our team working alongside 
our excellent product developers we have continued to 
review our product suite in 2013 and look at new ways to 
develop this area of our customer offer 
further details of our research and development activities 
during the year are set out in the directors’ report on page 
25
b2c
888 is a global gaming destination with core products in 
casino poker and bingo as well as an emerging offering 
in sport 888 has more than a dozen localised offerings 
providing players in more than 100 countries with the games 
they want in the languages they speak 
casino
casino has enjoyed another strong year across a variety of 
markets with particularly good growth generated across 
europe notably in italy the united kingdom and in spain 
where we have maintained a market leading position this 
significant achievement in part reflects the momentum we 
have continued to build during the course of the year around 
casino 50 our casino offering which was launched in the 
first quarter of 2012 our teams have continued to evolve and 
refresh our offer enhancing the customer experience launching 
new exclusive 888 developed slot games and supporting 
the product with strong marketing campaigns we have 
remained highly focused on player acquisition and delivered 
very effective results with active casino players continuing to 
increase against the prior year
as well as increasing active customers we aim to further 
enhance brand loyalty amongst our players which ultimately 
results in increased lifetime value we have continued to make 
progress against this objective this year in part as a result of 
the continuous development of our leading games portfolio 
and content aided by the capabilities of our inhouse games 
studio ensuring that we remain at the fore  
of the online gaming experience
poker
poker delivered another strong performance with the number 
of active players increasing more than 21 in q4 against the 
prior year this impressive growth achieved in what remains 
a highly competitive market is a result of the continued and 
relentless execution of our stated poker strategy of focusing 
on recreational players and providing them with a safe and 
enjoyable ecosystem our poker product is an accepted 
industry leader and we have continued to take market share 
06
888 holdings plc  annual report  accounts 2013 18 t’s  c’s apply gambleawarecouk
www888casinocom
£88
free
no deposit needed
sl  t s     bl  ckj a ck    r  ulette    live ca sin   
available for
android
2312404   25 march 2014 624 am   proof 11
resulting in 888 rising from number four to number two in 
the global poker liquidity rankings according to pokerscout 
during the course of the year this is an impressive achievement 
that is testament to our ongoing and meticulous network 
management in combination with our ‘smart marketing’ 
strategy the increasing popularity of mobile has also 
contributed to our strong poker performance with mobile 
devices ideally suited to the preferences and playing habits 
of our target recreational players overall we have delivered 
a good performance across territories with our leadership 
position in the spanish market being particularly pleasing
bingo
the bingo market remains a highly competitive and mature 
market that has proved to be challenging for operators over 
the course of 2013 however at the start of the year we took 
proactive action and conducted a strategic review of this 
segment along with extensive market research as a result 
we have restructured the department into a fully integrated 
product vertical replicating the approach we have in casino 
and poker and have readdressed the whole look shape and 
feel of our bingo customer experience through a number 
of operational and technical improvements whilst bingo 
revenue for 2013 was 16 lower compared to the prior year 
we are delighted to have seen steady progress during the 
second half of the year with revenue in q4 up 7 against q3 
and feel confident that this improving trend will continue as 
we enter 2014 the improvement has also in part been driven 
by the relaunch of bingo on mobile devices during the year 
which has demonstrated tremendous growth both in terms  
of player recruitment and generating deposits 
sport
888sport remains a relatively small part of our business 
however the sport market is important to our customers 
especially around major sporting events and also acts as an 
important acquisition tool enabling us to build our customer 
base and migrate players across products 
we continue to recognise both the need to invest in our sport 
offering and the growth opportunity in this market in may 
we were delighted to announce that the group had signed an 
agreement with kambi sports solutions a leading sportsbook 
supplier to deliver a fully managed sportsbook solution to 888 
under the 888sport brand we have now integrated our sport 
offering into our core platform which allows us to leverage all 
of our marketleading capabilities the agreement with kambi 
has allowed us to offer a broader range of betting materials 
and products for the uk and other markets through both 
online and mobile channels the improved 888sport offer was 
launched during the spring supported by an exciting marketing 
campaign and has delivered positive results with both margin 
and revenue improvement 
b2b
dragonfish our b2b offering is a key component of our 
regulated market strategy through our market leading b2c 
offering we have built a reputation for developing the best 
possible platform for operation and therefore an incentive 
for companies to partner with dragonfish in order to gain a 
foothold in newly regulating territories 
2013 has seen solid growth in this area of the business with 
revenues up 5 on the prior year as we have developed our 
b2b bingo platform as well as our globalcom bingo network 
where we remain one of the leading bingo software providers 
in the uk market supplying many leading brands as well as 
the relationships with our us partners
success in new markets
our ability to launch in newly regulated markets with 
impressive results reflects our proven platform and 
technological systems and provides an excellent base for 
continuing growth during the year we have continued to 
build impressively on our success in the recently regulated 
spanish and italian markets further establishing the 888 
brand in italy and developing a marketleading position  
in spain 
undoubtedly the key focus for international expansion over 
the course of 2013 has been the us market as we prepared  
for the longawaited regulation of delaware nevada and  
new jersey 
as previously outlined in the run up to regulation in the us 
market we had ensured that through our focused strategy 
and partnerships we would be ideally positioned to leverage 
own market leading platforms technological innovation and 
marketing expertise as the market opened experiences learnt 
from our successful launches in spain and italy in recent years 
further strengthened our position to execute our us strategy 
and by january 2014 our poker platform had built leading 
positions in each market 
our launch in each state has provided different challenges 
but has also provided a number of lessons and equipped 
us with new skills on which to build as we launch in further 
states as and when regulation occurs we have made further 
investment in the us supporting our operations with data 
centres for each of the regulated states and we remain 
committed to our objective of becoming the preeminent 
online gaming operations and services provider in the key  
us market as both a b2c operator and a b2b provider  
via dragonfish 
stock code 888
07
www888holdingsplccom strategic report 2312404   25 march 2014 624 am   proof 11
customer support and service
we pride ourselves on the strength of our customer 
relationships and are committed to providing a cost effective 
and efficient customer service first class customer support 
is offered for each of our brands and white labels through 
telephone email and chat to customers around the world in  
8 different languages 
we have ensured our customer service capability has 
been ready to support our growing operations in new and 
established markets and have not only hired new people 
in this field across the business but are in the process of 
establishing a dedicated operations centre in new jersey to 
support our growing business 
epayment and fraud 
888’s leading payment processing capabilities support 18 
languages and a wide variety of currencies with more than 
50 payment methods supported it is vital that we are able to 
offer fast efficient and easy to use payment processing both 
to ensure a positive customer experience but also to maximise 
revenue and convert browsers into players however we take 
our duty as a responsible operator very seriously and take 
comprehensive steps to minimise fraud 
2014 focus
2013 has been an incredibly rewarding year not only have we 
delivered strong growth across our core business but we have 
firmly cemented our strategy in the regulating us market 
as we entered 2014 our us operations although still in 
their very early stages were starting to build momentum 
and we are focused on refining and developing our current 
business as well as working with our partners to explore 
new opportunities in regulated states there is undoubtedly 
appetite for further regulation across the us with a number 
of states in advanced talks and throughout the course of the 
year we will be monitoring these potential markets closely 
for opportunities for 888 we firmly believe that through 
our strategy growing experience and the investment we are 
making in the us market for the long term we are best placed 
to take advantage as these opportunities come to bear 
across our core business the year ahead promises some 
exciting areas for development in 2013 a significant amount 
of resource was focused on delivering in the us and in 
2014 we will be able to redirect a significant portion of 
this resource to further developing our core products and 
markets the surge in mobile gaming has proved to be an 
important growth engine during 2013 whilst we have made 
good progress in developing our touch platforms to date this 
market is still in its infancy and will offer much more to learn 
and leverage as it develops 
following our partnership with kambi sports solutions our 
888sport brand has been revitalised and its performance to 
date in 2014 has been very encouraging in january 2014 we 
acquired a company holding a license allowing us to launch 
our sport offer in the spanish market and we feel confident 
that the forthcoming year will see us take further significant 
steps forward in this market 
in summary 2014 promises to be another very exciting year  
in 888’s continued development
brian mattingley
chief executive
25 march 2014
operations delivering on our plans
08
888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
financial review and  
key performance indicators
year ended
31 december
2013
1
us million
year ended
31 december
2012
1
us million change
revenue
b2c
 casino 1904 1655 15
 poker 936 875 7
 bingo 437 518 16
 emerging offering 245 250 2
total b2c 3522 3298 7
b2b 483 460 5
revenue 4005 3758 7
operating expenses
2
1141 1135
gaming taxes and duties
3
137 115
research and development expenses 307 272
selling and marketing expenses 1399 1312
administrative expenses
45
265 256
adjusted ebitda
345
756 668 13
depreciation and amortisation 139 148
share benefit charges finance and other 44 112
share of joint venture loss 41 —
profit before tax 532 408 30
adjusted earnings per share
6
166¢ 139¢ 19
reconciliation of operating profit to adjusted ebitda 
year ended
31 december
2013
1
us million
year ended
31 december
2012
1
us million
operating profit 562 369
depreciation 83 92
amortisation 56 56
share benefit charges 55 17
retroactive duties and associated charges — 111
impairment charges — 22
adjusted ebitda 756 668
1
  totals may not sum due to rounding
2
  excluding depreciation of us83 million 2012 us92 million and amortization of us56 million 2012 us56 million
3
  excluding retroactive duties and associated charges of nil 2012 us111 million
4
  excluding share benefit charges of us55 million 2012 us17 million
5
  excluding impairment charges of nil 2012 us22 million
6
 as defined in note 8 to the financial statements
“adjusted ebitda increased 13 to us76 
million 2012 us67 million and profit 
before tax increased 30 to us53 million  
2012 us41 million”
aviad kobrine chief financial officer
stock code 888
09
www888holdingsplccom strategic report 2312404   25 march 2014 624 am   proof 11
overview
888’s success is built on its technological strength and the 
efficient utilisation of this technology directed by extensive 
data analytics the goals of our industry leading business 
analytics are simple to maximise customer recruitment 
increase customer lifetime value and minimise the cost per 
customer acquisition thereby optimising return on marketing 
investment the continued growth in our revenues reflects 
our success in attracting new customers retaining them and 
increasing their overall spend
888 delivered another record performance in 2013  
with a revenue increase of 7 to us401 million 2012  
us376 million which was particularly impressive given the 
strong comparatives in the prior year growth was driven 
primarily by our b2c business with a 7 revenue increase in 
turn led by strong casino growth of 15 and poker up by 7 
we also saw growth in b2b with rising revenue increase of 5 
to us48 million 2012 us46 million 
adjusted ebitda increased 13 to us76 million 2012  
us67 million and adjusted ebitda margin increased to 189 
2012 178 despite research and development expenses 
increase of us35 million and payment of additional us2 
million gaming duties in regulated markets profit before tax 
increased 30 to us53 million 2012 us41 million and 
adjusted earnings per share increased 19 to 166¢ 2012 
139¢ 
888’s record performance in 2013 resulted in operational 
cash generation of us90 million 2012 us71 million the 
group’s financial position remains strong with cash and cash 
equivalents at the year end of us116 million 2012 82 million 
with no debt
financial review and  
key performance indicators
low res image 93dpi
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888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
product segmentation
888’s revenue by product segment is set out in the table below
revenue by product segment
888 casino continued its growth with record revenues of 
us1904 million and a 2 increase in active players compared 
to last year the main drivers behind this strong performance 
in 2013 were the launch of our mobile platform the offering 
of slot machines in italy optimizing our existing offerings and 
improving our efficiency of acquisition supported by strong 
marketing campaigns that have boosted first time depositors 
and shown a solid return on investment
our poker business also continues to grow with record 
revenues of us936 million and a 21 increase in active players 
compared to last year reflecting further market share gains and 
our advance to number two in the global poker rankings as 
reported by pokerscout 
despite the poker market as a whole contracting 888 was able 
to increase player numbers due to improvements made to our 
poker product enhancing the effectiveness of our marketing 
and our strategic focus on obtaining high levels of liquidity
the bingo b2c revenues declined by 16 as a result of a highly 
competitive and mature market in the uk however following 
a strategic review we have seen encouraging recovery signs 
during the final quarter of 2013 with a 7 revenue increase 
compared to the third quarter of 2013
emerging offerings revenues have slightly declined by 2 as a 
result of a lower activity in our brand licensing deal during the 
year we changed our sports supplier to kambi sports solutions 
to deliver a high quality sportsbook solution to 888 under our 
888sport brand the agreement has allowed us to offer a wider 
spectrum of betting markets and products for our players 
through both online channels and mobile platforms and we 
have already seen a significant positive effect during the final 
quarter of 2013 
b2b activity dragonfish delivered an increase in revenue of 
5 mainly due to our successful launch in nevada delaware 
and new jersey where our poker platforms have achieved 
marketleading positions as well as expanding operations with 
our bingo partners
 as at 19 march 2014
year ended
31 december
2013
us million
year ended
31 december
2012
us million change
revenue
b2c
 casino 1904 1655 15
 poker 936 875 7
 bingo 437 518 16
 emerging offering 245 250 2
total b2c 3522 3298 7
b2b 483 460 5
revenue 4005 3758 7
q4 2013 q4 2012 change
number of active customers b2c casino and poker 602000 520000 116
2013 2012 change
casino poker and sport real money registered customer accounts million 155 131 19
stock code 888
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geographical segmentation
888’s turnover by geography is set out in the table below
revenue by geographical market
year ended 31 december
revenue
2013
us million
growth on 
prior year
 from total 
revenue
uk 1633 1 41
europe excluding uk 1617 14 40
americas 464 22 12
rest of world 291 14 7
total revenue 4005 7 100
growth was achieved in most geographical segments with uk 
revenue up 1 11 excluding bingo and europe excluding 
uk revenue up 14 driven by remarkable growth in the 
spanish and italian regulated markets the increase in italy is 
primarily a result of the launch of video slots and improved 
efficiency of marketing activity 
since spain became part of our regulated offering we have 
increased market share and maintained a leading position 
revenue from the americas increased by 22 as a result of 
our successful launch in the us revenue from the rest of the 
world which was not a focus region for 888 in 2013 declined 
by 14
expenses
operating expenses
operating expenses

 which include mainly employee related 
costs chargebacks payment service providers’ “psp” 
commissions and costs related to operational risk management 
services totaled us114 million 2012 us114 million 
representing a lower proportion of revenues at 28 2012 
30 as a result of operating efficiencies and strict 
cost control 
staff costs included in operating expenses totalling  
us518 million 2012 us484 million increased by 7 mainly 
as a result of launched operations into the us
the group’s chargebacks ratio continued to decrease from 10 
in 2011 and 09 in 2012 to 08 in 2013 as a result of enhanced 
fraud and risk management mitigation systems including the 
optimized use of the 3dsecure verification services offered by 
credit card schemes and continuous improvements to our in
house monitoring protocols
the psp commission ratio decreased to 55 2012 60 
reflecting the group’s stronger commercial terms with greater 
deposit volume 
gaming duties
gaming duties levied in regulated markets reached  
us14 million 2012 us12 million excluding the payment of 
us11 million in 2012 backdated duties imposed in spain 
research and development expenses
research and development expenses were us31 million 2012 
us27 million reflecting the group’s efforts to simultaneously 
launch operations in three regulated us states and the further 
development of our mobile offering the introduction of 
“html5” technology on mobile devices has significantly 
reduced the effort required to customise the 888 offering to 
new devices as they are introduced to the market
the research and development expense charge does not 
include capitalised in house development costs which 
totaled us 10 million 2012 us8 million with the increase 
attributable mainly to the launched operations in  
the us
 
as defined in the table set out on page 9 
financial review and  
key performance indicators
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888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
in addition during 2013 the group established a new research 
and development center in eastern europe which will enhance 
888’s ability to cope with market challenges and competition
selling and marketing expenses
marketing expenses during the year reached a record 
us140 million 2012 us131 million reflecting our continued 
investments in european markets where the strategy is focused 
on combining diverse customer recruitment channels we also 
increased our poker marketing initiatives in our core uk market 
nevertheless our marketing ratio to revenue remained stable at 
35 2012 35 
administrative expenses
administrative expenses slightly increased to us27 million 
2012 us26 million mainly attributable to foreign exchange 
movement impact on salaries 
share benefit charges
equity settled share benefit charges were us33 million 2012 
us09 million a portion of the increased charge in 2013 
relates to performance based awards granted in the past which 
vested during the year cash settled share benefit charges were 
us22 million 2012 us08 million due to the higher fair 
value of the long term incentive plan further details are given 
in the directors’ remuneration report on page 34
finance income and expenses
finance income less finance expenses resulted in an expense 
of us03 million 2012 income of us19 million most of 
this income and expense is attributable to the fair value of 
operational hedging instruments the group continually 
monitors foreign currency risk and takes steps where practical 
to ensure that the net exposure is kept to an acceptable level 
inter alia by using foreign exchange forward contracts designed 
to fix the economic impact of known liabilities 
adjusted ebitda
as a result of revenue increase together with strict cost control 
a record adjusted ebitda of us76 million 2012 us67 
million was achieved adjusted ebitda margin increased to 
189 2012 178
taxation
the tax charge for 2013 was us32 million 2012  
us54 million the decrease is a result of prudent  
provisions in respect of previous years’ charges that were 
released this year
equity accounted joint ventures
as stated above in 2013 the group entered into a joint  
venture agreement with avenue as a result the group’s share 
of posttax loss of this equity accounted joint venture was  
us41 million 2012 nil in addition the group recognised a 
one time profit on acquiring 47 of the equity accounted joint 
venture of us19 million 2012 nil 
earnings per share
basic earnings per share rose 40 to 142¢ 2012 102¢ 
adjusted basic earnings per share rose 19 to 166¢ 2012 
139¢ we believe adjusted basic earnings per share excluding 
share benefit charges retroactive duties and associated 
charges movement in contingent and deferred consideration 
and impairment charges better reflects the underlying business 
and assists in providing a clearer view of the performance of 
the group
dividend
given the strong cash generation during the year the board of 
directors declared an interim dividend of 30¢ per share that 
was paid on 4 october 2013 taking into account the strong 
performance the board is recommending a final dividend of 
40¢ per share which together with the interim dividend equals 
70¢ per share in accordance with our payout policy and an 
additional oneoff 70¢ per share bringing the total for the year 
to 140¢ per share 2012 90¢ per share
cash flow
the group continues to generate substantial amounts of free 
cash with net cash generated from operating activities reaching 
a record of us90 million 2012 us71 million after payment 
of retroactive duties and associated charges the net increase 
in cash and cash equivalents in 2013 was us34 million 2012 
us56 after dividend payments during the year of us33 
million 2012 us87 million
balance sheet
the group’s balance sheet remains strong with no debt and 
ample liquid resources the group’s cash position as at 31 
december 2013 was us116 million 2012 us82 million 
balances owed to customers were us55 million 2012  
us49 million
 
as defined in the table set out on page 9
stock code 888
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as a business operating in a highly regulated environment 
and deeply committed to conducting its business in a lawful 
and compliant manner 888 is heavily impacted by regulatory 
changes relevant to its business operations whilst in its early 
days internet gaming was characterized by underregulation 
in most jurisdictions this situation has seen rapid change in 
numerous large markets in recent years 
following several years of emerging regulation in various 
european jurisdictions italy spain denmark france and 
others recent years have seen an emergence of licensing 
and regulatory regimes in various us states this represents 
a drastic change in the regulatory landscape applicable in 
the us where a 2006 federal law resulted in the majority of 
operators exiting the local market including the 888 group 
commensurate with its deep commitment to regulation 888 
is proud to be the only international online gaming operator to 
currently operate online gaming in all three us states that have 
launched commercial internet gaming – nevada new jersey 
and delaware – and we hope to expand into additional states 
once online gaming becomes regulated there additionally the 
group is preparing to face a reform to the regulation of online 
gaming in the united kingdom which will require the group to 
obtain a uk gaming license in 2014 
the group continues to be an active and vocal supporter of the 
regulation of online gaming and invests significant efforts in 
facing the various challenges posed by the ever growing and 
complex mosaic of divergent regulatory regimes relevant to 
its business worldwide the following paragraphs summarize 
the main relevant regulatory developments of 2013 and our 
expectations regarding changes that will impact the group  
in 2014 
european jurisdictions
after some years of hesitance by the european commission 
with regard to the regulation of online gaming within 
the european internal market 2013 saw the adoption of 
resolutions on the eu level calling for increased cooperation 
and coordination between member states with regard to 
the regulation of internet gaming as well as the launching 
of infringement cases against member states whose gaming 
laws contradict eu law these actions may lead to a greater 
degree of intereuropean consistency in the coming years 
and will hopefully also encourage member states to open their 
markets to licensing of foreign online gaming operators such 
developments are anticipated in the coming years in several 
european markets including ireland romania the czech 
republic the netherlands and sweden
reports indicate that spain where the group has held a license 
since june 2012 is likely to expand its regulatory regime to 
include online slots in 2014 this would present an opportunity 
for 888 which has already been successful in capturing a large 
share of the spanish market 
during 2012 the group was awarded online gaming and 
betting licenses by the german state of schleswigholstein 
legal ambiguities regarding the geographic scope of 
this license and the conditions applicable to it remained 
unresolved during 2013 the regulation of online gaming itself 
in germany continued to be characterised by legal ambiguity 
and inconsistencies during 2013 the german federal court 
of justice expressed significant doubts regarding the validity 
of the current german interstate gambling treaty under eu 
law and referred the matter for adjudication by the european 
court of justice where the matter remains pending as a result 
legal proceedings in lower german courts with regard to online 
gaming have generally been suspended or adjourned pending 
guidance from the federal court a tender process intended to 
select a handful of operators who were to be granted national 
sports betting licenses was bogged down by legal challenges 
and remains ongoing 
2013 saw the uk move towards a reform of the 2005 gambling 
act at the heart of the proposed reform which is expected to 
enter into law during early 2014 is the requirement for foreign 
operators wishing to offer their services to uk residents to 
obtain a uk gambling license and pay uk gaming duty on 
revenues generated from uk residents such a reform would 
effectively abolish the right of eueea based operators to 
advertise their services in the uk without a uk gaming license 
various challenges to the new law are anticipated including by 
the gibraltar betting and gambling association of which the 
group is a member notwithstanding the group is presently 
assessing the legal impact of the upcoming reform on its 
interaction with customers in the uk has supplied comments 
to the uk authorities in the context of consultations conducted 
with regard to the proposed reform and is preparing to apply 
for licensure in the uk if and when required to do so formal 
statements by the uk gambling commission indicate that 
holders of gibraltar online gaming licenses will be subject to 
a “transitional” regime allowing them to seamlessly continue 
operations under a uk license and avail themselves of a 
“continuing license” process whilst the group anticipates 
that the upcoming reform will have a definite impact on the 
manner in which it conducts its ukfacing business it  
expects such business to continue uninterrupted despite the 
upcoming reform
in greece the national regulator commenced a blacklisting 
process in june 2013 targeting online gaming sites unlicensed 
in the jurisdiction this move taken under the country’s 2011 
gaming law was accompanied by orders issued to the country’s 
internet service providers requiring them to block access to 
sites on the blacklist legal challenges against the blacklisting 
process remained pending as 2013 drew to a close in addition 
despite the 2011 gaming law allowing for the issuance of online 
gaming licenses in greece no such licenses were issued in 2013 
various proposals to amend the law were presented to the 
greek parliament but have not yet passed into law 
regulation
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888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
both hungary and romania amended their gambling laws 
during 2011 and introduced limited regulatory regimes 
governing online gaming the implementation of these 
new regulatory regimes was delayed in anticipation of the 
publication of necessary secondary legislation it seemed 
apparent as 2013 drew to a close that both jurisdictions 
intended to introduce further changes to their existing online 
gaming laws prior to their implementation
bulgaria issued regulations in 2013 to implement its 2012 
gaming law and began receiving applications for the issuance 
of local gaming licenses in late 2013 bulgaria amended the tax 
structure applicable to online gaming the group is studying 
the impacts of that reform 
the government of the netherlands continued its efforts 
towards liberalisation of the country’s regulatory regime 
applicable to online gaming the group continued to conduct 
its operations in the netherlands in accordance with interim 
guidelines issued by the local authorities and maintained close 
contact with the authorities providing information and making 
proposals with regard to the anticipated reform a draft online 
gaming bill is anticipated to be published for comments in 
2014 and the group will continue to engage with the dutch 
authorities with the hope that the anticipated reform will 
accommodate a vibrant and commercially viable online gaming 
market in the netherlands
political instability delayed reforms to the online gaming regime 
of the czech republic but these are expected to progress 
under a newly elected government in 2014 
in ireland the ministry of justice published a heads of bill 
document encapsulating a proposed reform to the country’s 
betting and online gaming regimes while the component of 
the reform related to betting is expected to enter into force 
during 2014 work on the gamingrelated reform is unlikely to 
reach fruition in the coming year the group continues to  
follow these developments and their impact on its operations in 
these markets
usa
though no progress was made with regard to federal legislation 
governing online gaming in 2013 major developments 
occurred on the state level this followed the publication 
of a us department of justice memorandum reversing the 
department’s longstanding position regarding the scope of 
the wire act the department’s conclusion that the wire act 
does not apply to nonsports betting and hence does not 
prohibit the intrastate sale online of lottery tickets by licensed 
state lotteries paved the way for various us jurisdictions to 
regulate intrastate online gaming indeed during 2013 internet 
gaming was launched in nevada new jersey and delaware 
on 21 march 2013 the group was licensed as an interactive 
gaming service provider by the nevada gaming commission 
after being recommended for licensure by the state gaming 
control board through its partnership with caesars interactive 
entertainment the group launched its first uslicensed online 
gaming platform offering online poker to players within the 
state of nevada under the world series of poker brand the 
group’s nevada platform was approved for a “field trial” by the 
nevada authorities and final approval of the platform by the 
state gaming commission is anticipated in 2014 as a pioneer 
of the nevada online gaming market the group has continued 
to work with the nevada authorities towards approval of inter
operator poker networks which will allow for shared liquidity 
between local licensed operators the group hopes that 
development on this front can be achieved in 2014 in addition 
the group has also supported efforts by the state to negotiate 
interstate agreements with other regulated us jurisdictions 
allowing for regulatory cooperation between states as well as 
the pooling of player liquidity in late february 2014 the multi
state internet gaming agreement between state of nevada 
and the state of delaware was entered into 
following the passage of legislation in the state of new jersey 
in 2012 approved by the state governor in 2013 the group 
applied for licensing as a casino service industry enterprise 
in that state late in 2013 the group received a transactional 
waiver from the new jersey division of gaming enforcement 
allowing it to commence internet gamingrelated operations in 
conjunction with caesars interactive entertainment 888 was 
amongst the group of first operators approved to launch their 
online gaming platform in the state including poker and casino 
games in november 2013 the group’s platform is available 
to players in new jersey both under 888’s own brands as 
well as under several brands belonging to the caesars group 
the group continues to work with the division towards final 
approval of its licensing application 
following a 2012 law enacted by the state of delaware 
allowing for the online provision of internet lottery games 
including casinostyle gaming and poker by the state lottery 
888 together with scientific games were selected to provide 
the technology to power the state lottery’s online offering the 
group worked with the state lottery providing professional 
input to the state lottery in connection with the drafting 
of internet lottery regulations and standards based on 888 
technology and under legislation governing the operation 
of internet lottery games internet gaming services are now 
offered to delaware players through websites branded and 
promoted by the state’s three racetrack casinos in connection 
with its selection as the lottery’s technology provider the 
group is presently undergoing licensing by the delaware 
division of gaming enforcement the group continues to 
maintain a close dialogue with the division and with the state 
lottery on technological regulatory and enforcement issues 
and is supportive of delaware’s desire to enter into interstate 
gaming agreements with other regulated us jurisdictions 
it is the group’s anticipation and hope that other us 
jurisdictions will follow in the footsteps of nevada new jersey 
and delaware in regulating the operation of internet gaming 
within their territories the state of michigan is expected to 
launch online lottery games in the coming months several 
other states including california and pennsylvania have been 
considering online gaming legislation while other states 
including new york are reportedly studying the market 
and considering their position with regard to the regulation 
of internet gaming these developments could all present 
potential business opportunities for the group which could act 
as a service provider to licensees and lottery corporations in 
the various states the group hopes to continue to lead the us 
online gaming market seeking licensing of its technology and 
products wherever such licenses are available in a commercially 
viable manner
stock code 888
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corporate responsibility
environmental impact 
as an online business 888’s activities have a relatively small 
impact on the environment however we remain committed to 
ensuring that wherever possible we minimise what little effect 
we have with the following four areas being the key focus 
points
energy consumption we continuously monitor our energy 
consumption to help us ensure we are being as energy efficient 
as possible
water we use only ecological detergents in our offices and use 
water saving devices in most of our locations
travel to minimise the impact of travel on the environment we 
encourage employees to either cycle to work and in certain 
locations provide buses for commuters we also continue to 
invest in the state of the art technology to help meetings occur 
remotely 
888 has commissioned a study to provide quantitative 
information regarding its environmental impact and to assist it 
in finding ways to further reduce its environmental impact
global green house gas emissions for period 1st january to 
31st december 2013
global green house gas emissions for period  
1st january to 31st december 2013
total emissions 
tonnes co
2
e
emissions from combustion of fuel scope 1 0 
process or fugitive emissions scope 1 0
emissions from electricity heat steam and 
cooling purchased for own use scope 2
5718
t otal emissions 5718
intensity measure emissions per total revenue 143 tco
2
e£m
although not legally required to do so as the company is 
incorporated in gibraltar we have reported on all the emissions 
sources stipulated under the companies act 2006 strategic 
report and directors’ reports regulations 2013 these sources 
fall within our consolidated financial statement we do not have 
responsibility for any emissions sources that are not included in 
our consolidated statement
we have used the ghg protocol corporate accounting and 
reporting standard revised edition data gathered from our 
own operations and emissions factors from uk government’s 
conversion factors for company reporting 2013 as well as an 
electricity emission factor for antigua sourced from undp
the reported emissions come from our offices data centre and 
servers owned by us but colocated at third party data centres 
our facilities in gibraltar use chilled water provided by a 
thirdparty for cooling and no emission factor for the chilled 
water was available as a result we estimated the associated 
emissions based on the volume of chilled water and an 
assumed coefficient of performance
the account of our corporate ghg emissions was prepared by 
the carbon trust in the uk
employees
888’s success depends on the quality and commitment of its 
people we take our responsibilities to our staff around the 
world very seriously and aim to provide an enjoyable work 
environment where employees are challenged and motivated 
to excel where flair is rewarded compensation is fair and the 
balance between work and family is respected 
we carry out regular employee satisfaction surveys each year 
with the latest answers collected in june 2013 the survey 
requests employee feedback regarding the employee hisher 
team direct manager divisional management and group senior 
management as well as regarding the organisation as a whole 
and the employee’s overall satisfaction
this year we were again pleased to report a continued high 
level of employee satisfaction with a number of actions taken 
to address the small number of issues raised these include 
improving knowledge sharing in the divisions professional 
development for key employees and managers and personal 
work with individual managers
all employees are formally updated twice a year regarding the 
group’s business results and employees are encouraged to 
raise ideas and provide feedback
in 2013 888 launched its “excellence club” our employee 
development program which sent a group of employees 
selected by their divisions for excellence in a number of fields 
to an exciting adventure trip in lapland we hope to continue 
this program in years to come with trips to other exotic 
locations planned 
in addition 888 runs a number of management skills programs 
for both senior managers and team leaders from all divisions 
as well as seminars for our b2c employees which in 2013 
focused on social media and marketing 
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888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
social community and human rights issues
our values
at 888 we are fully committed to maintaining a high standard 
of corporate and social responsibility this ethos is part of 
our culture and permeates throughout our business into the 
everyday business decisions we make on a day to day basis 
we also recognise that a responsible approach is not only 
the correct way to do business but one that enhances our 
credibility amongst all our stakeholders and thereby supports 
the development of the group 
responsible gaming
our values place the community and the customer at the 
centre of all our endeavours we aim to provide responsible 
adults with the best online gaming entertainment experience 
however we acknowledge that gaming poses a potential 
danger to a small minority of people we are constantly revising 
our innovative procedures to ensure minors are unable to 
access our gaming sites we also continuously train all our staff 
in how to provide a safe gaming experience to our customers 
our training program incorporates methods and techniques 
to help our employees recognise and take appropriate actions 
if they identify compulsive or underage activity we continue 
to innovate in this area including the development of our 
proprietary sophisticated observer system to help identify and 
prevent compulsive activity 
protecting customers
  as a responsible regulated gaming group we comply with 
both the gamcare and the ecogra guidelines gamcare 
is the leading authority on the provision of counselling 
advice and practical help in addressing the social impact 
of gambling in the uk ecogra ensures that approved 
online casinos are properly and transparently monitored to 
provide player protection
  our site has links to professional help agencies and we 
have placed many safeguards for those who need help 
with controlling their gaming
  ebreak  support program run in collaboration with 
specialist wellknown charity gambling therapy to offer 
888 customers a free of charge 4 week gambling therapy 
program 
  selfassessment test for players who are worried about 
their gaming habits and want to know more about the 
signs of compulsive gambling
  controlling deposit limits should clients feel the need 
to they can control their play pattern by self limiting the 
amounts they deposit per day per week or per month
  self exclusion a player can request to be self excluded 
for a chosen period due to different concerns based 
on internal studies we decided to increase time periods 
available for clients to “cool off” customers can choose 
from six different exclusion periods from one day to six 
months during this period 888 blocks the account and no 
promotional emails are sent to the customer
protecting minors
underage activity on our sites is strictly prohibited and 888 
takes the matter of underage gaming extremely seriously 
our offering is not designed to attract minors we make 
every effort to prevent minors from playing on our sites and 
use sophisticated verification systems as well as a third party 
verification supplier to identify and track minors if they log into 
our software the verification process today consists of two 
verification systems both 192com and uru
we train our staff to be highly sensitive to the possibility of 
underage activity and make sure we suspend any account 
suspected to be an underage account
888responsible
since 2007 a dedicated website www888responsiblecom 
has been available providing information regarding all aspects 
of responsible gaming the site is available in english french 
spanish and german
community
888 is committed to supporting both the various local 
communities in which it operates and also the broader global 
community our community investment program includes 
charitable donations and long standing community involvement 
in our key areas across the world in 2014 888 supported the 
international medical corps in their efforts to assist people 
affected by typhoon haiyan which struck the philippines in 
november 2013
human rights
888 ensures that its policies comply with local law in addition 
to reflecting the group’s values these policies set clear 
standards of behaviour to which all group personnel are 
expected to adhere including as regards social ethical and 
environmental matters in this respect 888 is guided by the 
ten principles of the united nations un global compact 
which encourages companies to make human rights labour 
standards environmental responsibility and anticorruption 
part of their business agenda
stock code 888
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diversity
diversity is important to us as we believe that only through 
access to the most diverse pool of talent will we recruit and 
retain the most talented individuals to serve our customers 
we actively seek to recruit and advance women into our 
top management a summary of the breakdown of men and 
women across the group is as of december 31 2013 is as 
follows
the board acknowledges that the lack of women on the 
board is a major challenge for the company and that it is the 
board’s responsibility to address this in 2013 the nominations 
committee included in the mandate of odgers berndtson the 
executive search firm retained to recruit new nonexecutive 
directors to the board a specific request to include female 
candidates amongst the list of candidates presented for its 
consideration 
men women
number percentage number percentage
board of directors 5 100 0 0
senior management 7 78 2 22
employees 657 52 616 48
corporate responsibility
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888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
principal risks and uncertainties
the group operates in a dynamic business environment in 
addition to the daytoday commercial risks faced by most 
enterprises such as fraud and theft the online gaming industry 
faces particular challenges in respect of regulatory risk 
reputational risk information technology risk and taxation risk 
each of which is detailed below the group considers that the 
nature of its principal risks has not undergone any significant 
change during 2013
regulatory risk
the regulatory framework of online gaming is dynamic 
and complex change in the regulatory regime in a specific 
jurisdiction could have a material adverse effect on business 
volume and financial performance in that jurisdiction in addition 
a number of jurisdictions have regulated online gaming and in 
many of those jurisdictions the group holds licenses however 
in some cases lack of clarity in the regulations or conflicting 
legislative and regulatory developments mean that the group 
may risk failing to obtain an appropriate license having existing 
licenses adversely affected or being subject to other regulatory 
sanctions furthermore legal and other action may be taken by 
incumbent gaming providers in jurisdictions which are seeking 
to regulate online gaming in an attempt to frustrate the grant 
of online gaming licenses to the group a detailed regulatory 
review is set out in the regulation section above 
the group manages its regulatory risk by routinely consulting 
with legal advisors in the jurisdictions where its services are 
offered or are accessible where necessary obtaining formal 
legal opinions from local counsel furthermore the group 
obtains frequent and routine updates regarding changes in the 
law that may be applicable to its operations working with local 
counsel to assess the impact of any changes on its operations 
the group constantly adapts and moderates its services to 
comply with legal and regulatory requirements finally the 
group blocks players from certain ‘blocked jurisdictions’ using 
multiple technological methods as appropriate
reputational risk
underage and problem gaming are inherent risks associated 
with the online gaming industry the group devotes 
considerable resources to putting in place prevention measures 
coupled with strict internal procedures designed to prevent 
underaged players from accessing its real money sites in 
addition the group promotes a safe and responsible gaming 
environment to its customers supplemented by its corporate 
culture the group has a dedicated director of responsible 
gaming tasked with the responsibility of implementing such 
policies further details about the group’s responsible gaming 
initiatives are set out in the social community and human 
rights issue section above 
information technology risks
as a leading online business the group’s it systems are critical 
to its operation the group is reliant on the performance of 
these systems
cuttingedge technologies and procedures are implemented 
throughout the group’s technology operations and designed 
to protect its networks from malicious attacks and other 
such risks these measures include traffic filtering anti
ddos distributed denial of service devices and antivirus 
protection from leading vendors physical and logical network 
segmentation is also used to isolate and protect the group’s 
networks and restrict malicious activities the it environment 
is audited by independent auditors such as pci dss security 
audit and ecogra audit these audits form part of the group’s 
approach to ensuring proper it procedures and a high level of 
security in order to ensure systems are protected properly and 
effectively external security scans and assessments are carried 
out in a timely manner the group has a disaster recovery site 
to ensure full recovery in the event of disaster all critical data 
is replicated to the disaster recovery site and stored offsite on 
a daily basis in the event of loss of functionality of the group’s 
critical services the business can be fully recovered through 
the resources available at the disaster recovery site
in order to minimise dependence on telecommunication 
service providers the group invests in network infrastructure 
redundancies whilst regularly reviewing its service providers 
the group has two internet service providers in gibraltar in 
order to minimise reliance on one provider
as a part of its monitoring system the group deploys set user 
experience tests which measure performance from different 
locations around the world networkrelated performance 
issues are addressed by rerouting traffic using different routes 
or providers 888 operates a 247 network operations centre 
noc the noc’s role is to conduct real time monitoring of 
production activities using stateoftheart systems these 
systems are designed to identify and provide alerts regarding 
problems related to systems key business indicators and issues 
surrounding customer usability experience
the it environment tracks changes incidents and sla kpis in 
order to ensure that client experience is consistent and well 
managed as part of these procedures capacity planning 
takes place and infrastructure is built accordingly systemwide 
availability and businesslevel availability is measured and 
logged in the it information systems
taxation risk
the group aims to ensure that each legal entity within the group 
is a tax resident of the jurisdiction in which it is incorporated 
and has no taxable presence in any other jurisdiction while the 
group’s customers are located worldwide certain jurisdictions 
may seek to tax the group’s activity which could have a material 
adverse effect on the amount of tax payable by the group or 
impose tax by reference to customers’ activity furthermore 
jurisdictions in which online gaming is regulated may impose 
gaming duties on licenced operators commencing in december 
2014 the united kingdom is expected to impose gaming tax on 
a point of consumption basis which is expected on the one hand 
to lower margins but on the other to continue the trend toward 
consolidation in that market the group actively monitors 
taxation risk in the relevant jurisdictions and takes such steps as 
it considers necessary to minimise such risks 
stock code 888
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principal risks and uncertainties
financial risks
the group considers its exposure to financial risks including 
country risk and exposure to trading counterparties to be low 
during 2013 the group hedged its foreign currency risks solely 
with leading banks including barclays plc and royal bank of 
scotland plc
partnership risks
in line with its strategy the group has consolidated its position 
in the b2b market to be focused on fewer larger b2b contracts 
however this strategy also gives rise to commercial risks in that 
the group is more exposed to nonrenewal or termination of 
existing contracts 
on behalf of the board 
brian mattingley
chief executive
25 march 2014
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board of directors
richard kilsby 
nonexecutive chairman
richard kilsby has been chairman since march 2006 having 
previously been deputy chairman of the group from august 
2005 since 2002 he has held several board and management 
positions in various private and venture capital funded 
companies in 2004 he acted as independent monitor for 
the sec and usa department of justice in connection with 
adecco from 1999 to 2002 he was chief executive of trade 
point and subsequently executive vicechairman of virtx plc 
from 1995 to 1998 he was an executive director of the london 
stock exchange prior to which he was a managing director for 
bankers trust from 1992 to 1995 he was also vicechairman of 
charterhouse bank from 1988 to 1992 and spent the early part 
of his career with price waterhouse now pwc where he was a 
partner from 1984 to 1988 age 62
brian mattingley
chief executive officer
brian mattingley has been chief executive officer since march 
2012 having previously been deputy chairman of the group 
and senior independent nonexecutive director since march 
2006 he joined the board in august 2005 he was previously 
chief executive of gala regional developments limited until 
2005 from 1997 to 2003 he was group finance and strategy 
director of gala group plc prior to which he was chief 
executive of ritz bingo limited he has held senior executive 
positions with kingfisher plc and dee corporation plc age 62
aviad kobrine
chief financial officer
aviad kobrine has been chief financial officer of the 
group since june 2005 and was appointed to the board in 
august 2005 from october 2004 he was a consultant to 
888 previously he was a banker with the media telecoms 
investment banking group of lehman brothers and prior to 
that he was a senior associate with slaughter and may he 
holds a masters in finance from the london business school 
distinction a ba in economics and an llb from tel aviv 
university age 50
john anderson
independent nonexecutive director
john anderson was the chief executive officer of the group 
from september 2000 to december 2006 he is currently 
nonexecutive chairman of burford holdings plc and was chief 
executive officer of burford holdings plc from 1996 to 2000 
he is chairman of the interactive gaming council chairman of 
10 tech holdings limited nonexecutive director of swiftstake 
technologies limited and nonexecutive director of probability 
gibraltar limited which is a wholly owned subsidiary 
of probability plc previously he was a board member of 
ladbrokes plc from 1990 to 1996 age 65
amos pickel
independent nonexecutive director
amos pickel was appointed in march 2006 formerly the chief 
executive officer of atlas management company limited and 
chief executive officer and member of the board of directors 
of red sea hotels ltd previously a nonexecutive director 
of gresham hotel group plc he is a nonpractising solicitor 
holding a masters in law from new york university and an 
llb from tel aviv university he is chairman of the board of 
directors of berggruen residential limited and is an executive 
director of swiftstake technologies sa age 47 
stock code 888
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directors’ report
the directors submit to the members their annual report and 
accounts of the group for the year ended 31 december 2013 
the strategic report corporate governance statement and 
remuneration report on pages 3 27 and 34 respectively form 
part of this directors’ report
results
the group’s profit after tax for the financial year of us50 
million is reported in the consolidated income statement on 
page 53 the board is recommending a final dividend of 40¢ 
per share which together with the interim dividend equals 
70¢ per share in accordance with our dividend policy and an 
additional oneoff 70¢ per share bringing the total for the year 
to 140¢ per share 2012 90¢ per share 
directors and their interests
biographical details of the current board of directors are 
shown on page 21 the directors who served during the year 
are shown below all directors retire at each annual general 
meeting and being eligible offer themselves for reelection on 
an annual basis
richard kilsby first appointed 30 august 2005
brian mattingley first appointed 30 august 2005
aviad kobrine first appointed 30 august 2005
john anderson first appointed 30 august 2005
amos pickel first appointed 14 march 2006 
the beneficial and nonbeneficial interests of the directors 
in shares of the company are set out in the directors’ 
remuneration report on page 34 there has been no change  
in the interests of directors in shares of the company between 
31 december 2013 and the date of this report
except as noted above none of the directors had any interests 
in the shares of the company or in any material contract or 
arrangement with the company or any of its subsidiaries
share capital
changes in the company’s share capital during the financial 
year are given in the consolidated statement of changes in 
equity as at 31 december 2013 the company’s issued  
share capital comprised 351977275 ordinary shares of  
gbp £0005 each at the annual general meeting held in may 
2013 the board was empowered to allot equity securities of the 
company for cash without application of preemptive rights 
under the company’s articles provided that such power is 
limited a to the allotment of equity securities in connection 
with a rights issue in favour of ordinary shareholders where the 
equity securities respectively attributable to the interests of all 
ordinary shareholders are proportionate as nearly as may be 
to the respective numbers of ordinary shares held by them 
and b to the allotment otherwise than pursuant to sub
paragraph a above of equity securities up to an aggregate 
nominal value of £8746476 5 of the company’s ordinary 
share capital in issue as at 21 march 2013 this authority 
expires at the conclusion of the next annual general meeting of 
the company in 2013 the company did not exercise any of the 
foregoing powers and authorities
articles of association
the articles of association of the company can only be 
amended by a special resolution at a general meeting of 
shareholders
rights attaching to ordinary shares
the rights and obligations attaching to ordinary shares are 
set out in the company’s articles of association holders of 
ordinary shares are entitled to attend and speak at general 
meetings of the company to appoint one or more proxies 
and to exercise voting rights holders of ordinary shares may 
receive a dividend and on liquidation may share in the assets of 
the company holders of ordinary shares are entitled to receive 
the company’s annual report subject to meeting certain 
thresholds holders of ordinary shares may requisition a general 
meeting of the company or the proposal of resolutions at 
general meetings
deadlines for exercising voting rights
electronic and paper proxy appointment and voting 
instructions must be received by the company’s registrars not 
later than 48 hours before a general meeting
restrictions on transfer of shares and limitations 
on holdings
there are no restrictions on transfer or limitations on the 
holding of ordinary shares other than under restrictions 
imposed by law or regulation for example insider trading laws 
or pursuant to the company’s share dealing code 
requirements of gaming regulations
nevada
the company has been licensed by the state of nevada as 
a licensee the company is subject to certain requirements 
under the nevada gaming control act and to the licensing and 
regulatory control of the nevada state gaming control board 
and the nevada gaming commission
the company has registered with the nevada gaming 
commission as a publicly traded corporation and its 
subsidiaries have been licensed as manufacturers and 
distributors of interactive gaming systems and as interactive 
gaming service providers such licenses are not transferable 
the nevada gaming commission may limit condition suspend 
or revoke a license registration approval or finding 
of suitability for any cause deemed reasonable by such 
licensing agency
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
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the nevada gaming commission may also require anyone 
having a material relationship or involvement with the 
company to be found suitable or licensed for such time as the 
company is subject to the aforementioned legal requirements 
and to the control of the nevada state gaming control board 
and nevada gaming commission any person who acquires 
more than 5 of any class of our voting securities must 
report within 10 days the acquisition to the nevada gaming 
commission any person who becomes a beneficial owner of 
more than 10 of any class of our voting securities is required 
to apply for a finding of suitability within 30 days after the 
chairman of the nevada state gaming control board mails 
written notice in accordance with nrs 463643 under certain 
circumstances an “institutional investor” as such term is 
defined in the regulations of the nevada gaming commission 
which acquires more than 10 but not more than 25 of 
any class of our voting securities may apply to the nevada 
gaming commission for a waiver of such finding of suitability 
requirements
the nevada gaming commission may also in its discretion 
require any other holders of our equity securities or any holders 
of our debt securities to file applications be investigated and 
be found suitable to own our equity or debt securities the 
applicant security holder is required to pay all costs of such 
investigation 
any person who fails or refuses to apply for a finding of 
suitability or a license within 30 days after being ordered 
to do so by the nevada gaming commission may be found 
unsuitable based solely on such failure or refusal the same 
restrictions apply to a record owner if the record owner when 
requested fails to identify the beneficial owner any security 
holder found unsuitable and who holds directly or indirectly 
any beneficial ownership of the common stock beyond such 
period of time as may be prescribed by the nevada gaming 
commission may be guilty of a gross misdemeanor
changes in control through merger consolidation acquisition 
of assets management or consulting agreements or any form 
of takeover cannot occur without prior investigation by the 
nevada state gaming control board and approval by the 
nevada gaming commission
new jersey
vendors offering goods or services to a casino applicant or 
licensee which directly relate to internet gaming activity are 
subject to strict regulation pursuant to the new jersey casino 
control act and the regulations promulgated thereunder 
collectively referred to as new jersey act the new jersey 
act created the new jersey casino control commission new 
jersey commission and the new jersey division of gaming 
enforcement new jersey division under the new jersey 
act a casino service industry enterprise csie license is 
required for a vendor offering goods or services to a casino 
applicant or licensee which directly relate to internet gaming 
activity the new jersey division has the authority to decide 
csie license applications the new jersey division also has 
the responsibility to investigate all license applications and 
to prosecute violations of the new jersey act however the 
new jersey commission has the authority to hear and decide 
appeals regarding denials of csie license applications by the 
new jersey division 
 
two subsidiaries of the company 888 atlantic limited and 
aapn new jersey llc have pending csie license applications 
before the new jersey division in connection with providing 
internet gaming services to new jersey casino licensees 
the issuance and maintenance of a csie license requires 
that directors officers key employees and owners of the 
applicant company be found by the new jersey division 
to be of good character honesty and financially stable by 
a showing of clear and convincing evidence a csie license 
application consists of disclosure forms for the applicant 
each of its holding companies and each individual required to 
be found qualified by the new jersey division generally all 
five percent 5 or greater direct or indirect owners certain 
officers certain directors and sales representatives soliciting 
business from atlantic city casinos and their supervisors must 
be qualified unless the qualification requirement is waived 
outside directors of a holding or intermediary company of a 
csie license applicant are only required to be licensed if they 
are members of the audit or executive committee officers 
may be waived from the qualification requirement if they are 
not significantly involved in and have no authority over the 
conduct of business with a casino however the chief executive 
officer chief financial officer chief technology officer and 
chief legal officer cannot be waived the new jersey division 
has the discretion to require other persons to be qualified 
these rules apply to all entities through the chain of ownership 
regardless of any resulting dilution in interest in the applicant 
so that any direct or indirect owner of five percent 5 or 
more of any applicant or holding company must file as must 
their officers and directors the 5 or greater ownership is 
generally calculated based on ownership of equity securities 
the new jersey division may also aggregate the holdings 
of different owners of less than 5 and require each to be 
qualified if they have a commonality of interest with each other 
situations in which this may occur include common control of 
different entities or familial relationships 
with respect to security holders the new jersey division may 
waive the qualification requirement for “institutional investors” 
as defined in the new jersey act of an applicant if i there 
is no reason to believe that the institutional investor may be 
unqualified ii the institutional investor holds less than 25 
percent of the outstanding securities iii the securities were 
acquired for investment purposes only and iv the holder 
has no intention of influencing the affairs of the applicant 
other than voting its securities the new jersey act defines an 
“institutional investor” as i any retirement fund administered 
by a public agency for the exclusive benefit of federal state or 
local public employees ii an investment company registered 
under the investment corporate law of 1940 iii a collective 
investment trust organised by banks under part nine of the 
rules of the comptroller of the currency iv a closed end 
investment trust v a chartered or licensed life insurance 
company or property and casualty insurance company vi 
banking or other licensed or chartered lending institutions vii 
an investment adviser registered under the investment advisers 
act of 1940 and viii such other persons as the new jersey 
division may determine for reasons consistent with the policies 
of the new jersey act 
stock code 888
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in connection with a license application the new jersey 
division conducts an investigation of the applicant and its 
individual qualifiers to determine their suitability for licensure 
in order for a csie license to be issued by the new jersey 
division the applicant and its individual qualifiers must 
demonstrate by clear and convincing evidence their good 
character honesty and integrity and their financial stability 
integrity and responsibility the investigation of a csie 
applicant and affiliated individuals and entities will normally 
take at least a year
an applicant for an internet csie license is responsible for the 
entire cost of the investigation charged at the division’s hourly 
rates which currently is 113 plus outofpocket expenses all 
unexpected cash disbursements are charged directly to the 
applicant 
no notifications pursuant to dtr rule 5 have been received by 
the company between 31 december 2013 and the date of this 
annual report 
shareholder agreements and consent requirements 
there are no known arrangements under which financial rights 
are held by a person other than the holder of the shares 
a relationship agreement governing the relationship between 
the above principal shareholder trusts and the company was 
entered into in connection with the company’s flotation the 
relationship agreement provides that all transactions between 
the group and the principal shareholder trusts will be on a 
normal business basis that the group will be allowed to carry 
on business independently of them and that the principal 
shareholder trusts will not cause the company to contravene 
the code unless required by law or as contemplated in the 
relationship agreement it further provides that each of the 
principal shareholder trusts will not solicit group employees 
without consent that only independent directors can vote 
on proposals to amend the relationship agreement that 
the principal shareholder trusts will consult the group prior 
to disposing of a significant number of shares in order to 
maintain an orderly market and shall not disclose confidential 
information unless required to do so by law or relevant 
regulation or having first received the company’s consent 
the relationship agreement also includes restrictions on the 
principal shareholder trusts power to appoint directors and 
includes obligations on the trusts to ensure that the majority of 
the board excluding the chairman is independent the principal 
shareholder trusts can nominate a nonexecutive director 
for appointment to the board in the event that this right is 
exercised and it results in fewer than half the board excluding 
the new jersey division has broad discretion regarding the 
issuance suspension or revocation of csie licenses the new 
jersey division may impose conditions on the award of a 
license in addition the new jersey division has the authority 
to impose fines or suspend or revoke a license for violations of 
the new jersey act including the failure to satisfy the licensure 
requirements a csie license is issued for an indefinite term and 
will essentially remain effective thereafter unless the license 
is suspended expires or is revoked the applicant is asked to 
resubmit related information every five years
substantial shareholdings
as at 31 december 2013 the company had been notified of the 
following interests in 5 or more of its share capital under dtr 
rule 5 of the uk listing authority
the chairman of the board being independent directors such 
appointment shall only become effective upon the appointment 
to the board of an additional independent director acceptable 
to the nominations committee such restrictions and obligations 
apply in respect of the e shaked shares trust and o shaked 
shares trust whilst they collectively hold not less than 75 of 
the issued share capital of 888 and in respect of the benyitzhak 
family shares trust whilst it individually holds not less than 75 
of the issued share capital of 888
change of control 
a change of control in the group may in the event of failure to 
fulfill any applicable consent requirement give rise to certain 
revocation or termination rights under the group’s gaming 
licences or certain contracts to which the group is a party
political donations
the company did not make any political donations during  
the year
financial instruments
the financial risk management objectives and policies of the 
company are set out in the notes to the financial statements 
on page 83 the company is not materially exposed to foreign 
exchange fluctuations given its policy to hedge its currency 
exposure as described in note 27 to the financial statements 
the company is not materially exposed to price risk credit risk 
or liquidity risk given that endusers are required to fund their 
online gaming wallet prior to carrying out any gaming activity 
operational cash flow is not a material risk for the company in 
addition the group manages its cash in a prudent manner and 
maintains sufficient liquid resources to meet its anticipated 
liabilities as and when they come due
principal shareholders number of shares  issued share capital
e shaked shares trust 86283534 2451
o shaked shares trust 86283534 2451
benyitzhak family shares trust 37122358 1055
directors’ report
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directors’ indemnities
the company’s articles of association permit the company 
to indemnify its directors in certain circumstances as well 
as to provide insurance for the benefit of its directors the 
company has undertaken to indemnify its nonexecutive 
directors a in defending any proceedings whether civil or 
criminal in which judgment is given in favour of such non
executive director or in which such nonexecutive director 
is acquitted or b in connection with any application under 
section 378 of the gibraltar companies act pursuant to which 
the court may provide relief to such nonexecutive director 
in any proceedings for negligence default breach of duty or 
breach of trust on grounds that such nonexecutive director 
has acted honestly and reasonably and that having regard to 
all circumstances of the case including those connected with 
his appointment he ought fairly to be excused from liability 
on such terms as the court thinks fit the company also 
undertook in favour of aviad kobrine to indemnify him to the 
fullest extent permitted by applicable law and the company’s 
articles of association in connection with the execution of his 
duties andor exercise of his powers authorities and discretions 
pursuant to his employment agreement in addition certain 
special indemnities were provided to the executive directors 
in connection with the compliance and licencing procedures 
relating to the company’s business in the united states details 
of which were provided in the company’s 2011 annual report
corporate governance
the corporate governance statement is on pages 27 to 30 and 
is incorporated in this directors’ report by reference 
principal subsidiary undertakings
the principal subsidiary undertakings are listed on page 80
research  development activities
2013 was a year of major investment in developing the group’s 
infrastructure in order to support our growing business as 
well as to meet regulatory and market needs in support of our 
business strategy our research  development focus was on 
regulated markets and mobile as well as improving scalability 
of our gaming platforms and of our back office and included 
regulated markets delivering the group’s offering in 
three states over a period of three months required the 
commitment of substantial capital and human resources 
leading to successful launches in nevada in september and in 
both delaware and new jersey in november major areas of 
investment included
  data center setup three fully operational data centers 
were established in the us one dedicated to each 
regulated market 
  adaptation to regulation guidelines the different state 
regulatory requirements meant that our platform and 
games needed to be adapted separately for each state
  certification working with accredited testing houses we 
ensured that our platform passed regulatory certification 
for each state
  new payment options configuration of the platform to 
interface with us banks and payment methods required 
the implementation of entirely new processes
  major product modifications our platform and games 
were adapted to suit us customers’ preferences and 
needs
we will continue investing to develop our platform for 
regulated markets as part of the group’s strategic direction
mobile 2013 saw the completion of 888’s strategy of full 
mobile coverage with all 888 products now offered on both 
ios and android platforms smartphones and tablets 
the group is constantly adding both content and customer 
communication tools to its mobile offering
sport the group migrated its sports offering from the 
bluesquare platform to the kambi platform 
games in 2013 we made substantial investments in our world
class inhouse games studio which together with new external 
partners such as netent added new games over all platforms 
pc  mobile
core business  operation during 2013 the group invested 
in infrastructure and tools supporting our operations and 
core business projects included the rebuild of our backoffice 
software the addition of new backoffice tools the addition 
of enhanced marketing capabilities including sophisticated 
communication tools with players and additional payment 
options all with a focus on optimizing cost and improving 
efficiency
greenhouse gas emissions
details of the company’s greenhouse gas emissions are set out 
in the corporate responsibility section of the business review 
on page 16
auditors
a resolution for the reappointment of bdo llp and bdo 
limited as auditors of the company will be proposed at the 
2014 annual general meeting
during the year ended 31 december 2013 bdo llp were 
appointed auditors for the purposes of the company preparing 
financial statements as required pursuant to the listing rules 
of the uk listing authority bdo limited have been appointed 
to act as auditors for the purposes of issuing an audit report 
pursuant to section 10 of the gibraltar companies accounts 
act 1999 to be filed with the gibraltar companies registry
stock code 888
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directors’ statement of responsibilities
company law requires the directors to prepare financial 
statements in accordance with the gibraltar companies 
accounts act 1999 the gibraltar companies consolidated 
accounts act 1999 and the gibraltar companies act
international accounting standard 1 requires that financial 
statements present fairly for each financial year the group 
and company’s financial position financial performance 
and cash flows this requires the faithful representation of 
the effects of transactions other events and conditions in 
accordance with the definitions and recognition criteria 
for assets liabilities income and expenses set out in the 
international accounting standards board’s ‘framework for 
the preparation and presentation of financial statements’ in 
virtually all circumstances a fair presentation will be achieved 
by compliance with all applicable ifrss a fair presentation also 
requires the directors to 
  consistently select and apply appropriate accounting 
policies
  present information including accounting policies in a 
manner that provides relevant reliable comparable and 
understandable information and 
  provide additional disclosures when compliance with 
the specific requirements in ifrss is insufficient to 
enable members to understand the impact of particular 
transactions other events and conditions on the entity’s 
financial position and financial performance 
the directors are responsible for keeping proper accounting 
records which disclose with reasonable accuracy at any 
time the financial position of the company for safeguarding 
the assets for taking reasonable steps for the prevention 
and detection of fraud and other irregularities and for the 
preparation of a directors’ report which complies with the 
gibraltar companies accounts act 1999 the gibraltar 
companies consolidated accounts act 1999 and the gibraltar 
companies act
financial statements are published on the group’s website in 
accordance with legislation in the uk governing the preparation 
and dissemination of financial statements which may vary from 
legislation in other jurisdictions the maintenance and integrity 
of the group’s website is the responsibility of the directors the 
directors’ responsibility also extends to the ongoing integrity of 
the financial statements contained therein
the directors are responsible for preparing the annual report 
and the financial statements the directors are required to 
prepare financial statements for the group in accordance with 
international financial reporting standards ifrss and have 
also chosen to prepare financial statements for the company in 
accordance with ifrss
the directors consider that the annual report and accounts 
taken as a whole is fair balanced and understandable and 
provides the information necessary for shareholders to assess 
the group’s performance business model and strategy
we confirm to the best of our knowledge 
a  the financial statements prepared in accordance with 
international financial reporting standards as adopted by 
the eu give a true and fair view of the assets liabilities 
financial position and profit or loss of the group and the 
undertakings included in the consolidation taken as a 
whole and
b  the strategic report includes a fair review of the 
development and performance of the business and the 
position of the group and the undertakings included in the 
consolidation taken as a whole together with a description 
of the principal risks and uncertainties that they face 
all of the current directors have taken all the steps that 
they ought to have taken to make themselves aware of any  
information  needed  by  the  company’s  auditors  for  the  
purposes  of  their  audit and  to  establish  that  the auditors 
are aware of that information  the directors are not aware 
of any relevant audit information of which the auditors are 
unaware
on behalf of the board 
brian mattingley
chief executive
25 march 2014
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888 holdings plc is admitted to the uk official list and its 
shares are traded on the london stock exchange under a 
premium listing as such despite being incorporated in 
gibraltar the uk corporate governance code the ‘code’ 
applies to the company and is available at wwwfrcorguk  
a new edition of the code was published in september 2012 
and applies to the 2013 reporting period
statement of compliance
the board remain committed to the principles of corporate 
governance in the code which it considers to be central to the 
effective management of the business and to maintaining the 
confidence of investors this report explains how the company 
has applied the main principles of the code 
during 2013 the company materially complied with the code 
other than as regards the following
  the company did not have a senior independent director 
serving on the board of directors during 2013 the 
functions of a senior independent director were fulfilled 
during 2013 by the chairman and nonexecutive directors
  board evaluations have been conducted internally over 
the past three years by facilitation of the chairman in 
coordination with the company’s legal adviser herzog 
fox  neeman who may not be considered an external 
facilitator
board composition
the directors consider it essential that the company should be 
both led and controlled by an effective board
during 2013 the board consisted of five directors as follows 
two independent nonexecutive directors a nonexecutive 
chairman and two executive directors being the chief 
executive officer and chief financial officer 
at present there is no senior independent director on the 
board during 2013 the board appointed executive search 
firm odgers berndtson to undertake a search for new non
executive directors a process of identification of potential 
candidates and interviewing has taken place it is noted that 
odgers berndtson is independent of the company and has no 
other connections with the company the role of the senior 
total number of meetings held during the year ended
december 2013 and the number of meetings attended by each director
board audit committee remuneration committee nominations committee
total held in year 6 4 3 1
richard kilsby 6 na na na
brian mattingley 6 na na na
aviad kobrine 6 na na na
john anderson 4 3 2 1
amos pickel 6 4 3 1
independent director is to provide a sounding board for the 
chairman to evaluate the chairman’s performance and lead the 
board’s succession planning and to serve as an intermediary for 
the other directors where necessary during 2013 the chairman 
and nonexecutive directors fulfilled the functions of a senior 
independent director
the biographical details of all of the directors are given on page 
21 the service contracts of the present nonexecutive directors 
were renewed for an additional three year period on  
1 march 2013 in doing so the company rigorously reviewed the 
performance of its nonexecutive directors taking into account 
the need for progressive refreshing of the board
board strategic approach
the board focuses upon the group’s longterm objectives 
strategic and policy issues and formally and transparently 
considers the management of key risks facing the group as well 
as determining the nature and extent of significant risks it will 
take in achieving its strategic objectives maintaining sound risk 
management and internal control systems and reviewing annually 
the effectiveness of the company’s risk management and internal 
control systems the board is responsible for acquisitions and 
divestments major capital expenditure projects and considering 
group budgets and dividend policy the board also determines 
key appointments the board receives regular updates on 
shareholders’ views the board has an established calendar of 
business this covers the financial calendar strategic planning 
annual budgets and performance selfassessments as well as 
the conduct of standing business the calendar forms the basis 
for effective integration of business activities as between the 
board and its principal committees see pages 28 and 29 which 
individually consider their own operating frameworks against 
the board’s business programme the board plans to meet six 
times a year during 2013 the board met six times set out below 
are details of the directors’ attendance record at board and 
committee meetings in 2013
corporate governance statement
stock code 888
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john anderson did not attend some meetings as noted above 
due to a period of illness from which he has now recovered
the chairman has responsibility for ensuring that agendas for 
board meetings are set in advance board papers are issued to 
directors sufficiently in advance of meetings to facilitate both 
informed debate and timely decisions
nonexecutive review and performance appraisal
the chairman holds meetings at least once per year with 
the nonexecutive directors without the executive directors 
being present the nonexecutive directors meet once per 
year without the chairman present in order to appraise the 
performance of the chairman and taking into account the 
views of the executive directors it is part of the role of senior 
independent director to lead this process presently the board 
is in the process of appointing a new senior independent 
director during 2013 the chairman and nonexecutive 
directors fulfilled the functions of a senior independent 
director the directors have wideranging business experience 
and no individual or group of individuals dominates the 
board’s decision making
the board considers that john anderson and amos pickel 
satisfy the independence criteria of the code in 2013 the 
board is satisfied that upon his appointment as chairman 
richard kilsby met the independence criteria of the code the 
other significant commitments of the chairman during 2013 
are detailed in his biography on page 21 the board considers 
that mr kilsby’s other commitments do not interfere with the 
discharge of his responsibilities to the group and is satisfied 
that he makes sufficient time available to serve the company 
effectively
the board has established a formal process for the annual 
evaluation of its performance its committees and individual 
directors the evaluation process covers a range of issues 
such as board processes board roles and responsibilities 
board agendas and committee processes the internal board 
evaluation relating to performance in 2013 was carried out in 
march 2014 and included evaluation of the performance of the 
board as a whole as well as evaluation of individual directors 
and the chairman pursuant to the evaluation the board was 
satisfied that the nonexecutive directors continue to be 
effective and to demonstrate commitment to their role the 
chairman in coordination with the company’s legal adviser 
facilitated the evaluation process a detailed questionnaire was 
used covering various aspects of the board’s functions and 
particular focus was given to the overall quality of decision
making and performance of the chairman following analysis 
of the questionnaire responses a detailed discussion was held 
by the board of the results and the company’s legal adviser 
provided external feedback on the whole the results of the 
evaluation were positive with the key followup action being 
to progress the recruitment of additional experienced non
executive directors 
reserved powers and delegation
a schedule of matters reserved to the board has been adopted 
and its content is reviewed to align it with operational needs 
and the board’s preference to monitor and where appropriate 
approve matters of substance to the group as a whole 
senior executives have given written undertakings to ensure 
compliance within their business operations with the board’s 
formal schedule of matters reserved to it for decision or 
approval
division of responsibilities
the responsibilities of the chairman are clearly and formally 
defined with the chairman being responsible for the effective 
operation of the board as a whole leadership of the board 
in achieving a culture of constructive challenge by non
executives regularly agreeing and reviewing each director’s 
training and development needs and supporting key external 
relationships
conflicts of interest
conflicts of interest of the directors are dealt with in 
accordance with the procedures set out in the company’s 
articles of association and are monitored by the chairman 
such procedures operated effectively during the year
succession planning
the board considers succession planning matters on an 
ongoing basis with particular focus on succession planning for 
the ceo role as well as for senior management at board level 
the board has prioritized the recruitment of experienced non
executive directors
other issues
all directors have access to the advice and services of the 
company secretary and the company’s nominated advisers 
who are responsible for ensuring that board procedures are 
followed directors are able to seek independent professional 
advice if required at the company’s expense provided that 
they have first notified their intention to do so 
the appointment or removal of the company secretary is a 
matter for the board as a whole
the board accepts that there should be a formal rigorous and 
transparent procedure for the induction of new directors which 
has been formulated with the guidance of the nominations 
committee
the opportunity to hold office as nonexecutive directors of 
other companies enables directors of 888 to broaden their 
experience and knowledge which will benefit the company 
executive directors may be allowed to accept nonexecutive 
appointments with the board’s prior permission so long as 
these are not likely to lead to any conflict of interest executive 
directors may be required to account for fees received from 
such other companies
the company has arranged insurance cover in respect of 
legal actions against its directors to the extent permitted by 
gibraltar law the company also indemnifies the directors 
neither the insurance nor the indemnity provides cover where a 
director has acted fraudulently or dishonestly
reelection and appointment of directors
all directors are subject to reappointment by shareholders on 
an annual basis in accordance with the provisions of the code
the board may appoint any person to be a director of the 
company and such director shall hold office only until the next 
agm when he or she shall be eligible for reappointment by 
the shareholders 
audit committee
details of the audit committee’s functions together with its 
specific activities in 2013 are set out in the audit committee 
report on pages 31 to 33
corporate governance statement
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
28 2312404   25 march 2014 624 am   proof 11
nominations committee
during the year the nominations committee comprised two 
independent nonexecutive directors amos pickel chair and 
john anderson
the nominations committee assists the board in discharging 
its responsibilities relating to the composition of the board 
the nominations committee is responsible for reviewing 
from time to time the structure of the board determining 
succession plans for the chairman and chief executive officer 
and identifying and recommending suitable candidates for 
appointment as directors the nominations committee’s terms 
of reference are available and are included on the company’s 
website www888holdingsplccom
during 2013 the board appointed executive search firm odgers 
berndtson to undertake a search for new nonexecutive 
directors a process of identification of potential candidates 
and interviewing has taken place 
the nominations committee is also responsible for 
implementing the board’s policy on diversity within the 
scope of its mandate including setting measurable objectives 
and monitoring progress on achieving such objectives in 
considering new board appointments diversity including 
gender diversity is one of the criteria considered by the 
nominations committee the company’s statement regarding 
diversity is set out in the corporate responsibility section of 
the business review on page 18
remuneration committee
during the year the company’s remuneration committee 
comprised two independent nonexecutive directors amos 
pickel chair and john anderson
the board has overall responsibility for determining the 
framework of executive remuneration and its cost it is 
required to take account of any recommendation made by the 
remuneration committee in determining the remuneration 
benefits and employment packages of the executive directors 
and senior management and the fees of the chairman
the directors’ remuneration report which outlines the 
remuneration committee’s work and details of directors’ 
remuneration is on pages 34 to 48 the remuneration 
committee’s terms of reference are available and are included 
on the company’s website www888holdingsplccom
risk management and internal control
the directors acknowledge that they are responsible for the 
company’s system of internal control for setting policy on internal 
control and risk management and for reviewing the effectiveness 
of internal control and risk management it is management’s 
role to implement board policies on risk and control including 
reporting the system of internal control is designed to manage 
rather than eliminate the risk of failure to achieve business 
objectives and can only provide reasonable and not absolute 
assurance against material misstatement or loss
the board has delegated responsibility to the audit committee 
to review the appropriateness and adequacy of systems 
of internal control and risk management in relation to the 
financial reporting process on an ongoing basis and to make 
recommendations to the board during 2013 deloitte limited 
gibraltar carried out the company’s internal audit function 
reporting to the audit committee details of the internal audit 
function are included in the audit committee report on  
page 31
888’s payment risk management team based in gibraltar 
has developed stringent payment risk management and 
fraud control procedures the team makes use of external 
and internal systems to manage the payment risks detailed 
procedures exist throughout the company’s operations and 
compliance is monitored by operational management and the 
internal audit function
the directors annually review the effectiveness of the group’s 
systems of internal control and risk management the review 
considers individual risk control responsibilities reporting lines 
and qualitative assessments of residual risks such a review was 
carried out in 2013
relations with shareholders and  
key financial audiences
the company maintains an active and regular dialogue 
with principal and institutional shareholders and sellside 
analysts through a planned programme of investor relations 
and financial pr activity the outcome of these meetings 
is reported to the board the programme includes formal 
presentations of full year and interim results quarterly release 
of interim management statements analysts’ conference calls 
and periodic road shows 
shareholders are free to contact any nonexecutive director to 
address any issues where contact with the chairman and chief 
financial officer is inappropriate or where such contact has 
failed to resolve the issue
all shareholders are welcome to attend the 2014 annual 
general meeting scheduled to be held on 14 may 2014 
and private investors are encouraged to take advantage 
of the opportunity given to ask questions the chairmen 
or nominated members of the audit remuneration and 
nominations committees will attend the meeting and be 
available to answer questions
stock code 888
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corporate governance statement
compliance with statutory provisions
as the company is registered in gibraltar it is subject to 
compliance with gibraltar statutory requirements the main 
legislation relevant to companies in gibraltar is the gibraltar 
companies act which is based on the uk companies act 
1929 the company is in full compliance with the gibraltar 
companies act
going concern 
after careful review of the group’s budget for 2014 its 
mediumterm plans liquid resources and all relevant matters 
the directors are confident that the company and the group 
have adequate financial resources to continue in operational 
existence for the foreseeable future they have therefore 
continued to adopt the going concern basis in preparing the 
financial statements
the principal risks and uncertainties faced by the group are 
disclosed in the business review on pages 19 to 20
corporate social responsibility statement
the group’s chief executive officer is the director responsible 
for monitoring corporate social responsibility within 888 the 
board receives periodic reports on the group’s activities in this 
area from the chief executive officer further details are set 
out in the corporate responsibility section on pages 16 to 18
whistleblowing policy
the company’s whistleblowing policy sets out the overall 
responsibility of the board for implementation of the policy but 
notes that the board has delegated daytoday responsibility 
for overseeing and implementing it to the designated 
whistleblowing officer the policy provides that where an 
employee is not comfortable making a disclosure to his
her respective direct line manager disclosure can be made 
to the designated whistleblowing officer whose details are 
provided if the subject of the disclosure in any way involves 
the designated whistleblowing officer the disclosure may be 
made directly to the chairman of the audit committee or to 
another member of the group’s senior management whilst 
employees are permitted to make disclosures anonymously 
disclosing employees are encouraged to reveal their identity 
to the designated whistleblowing officer in order to allow a 
full and proper investigation to take place measures can be 
taken to preserve the confidentiality of the disclosure where 
appropriate the board commits to investigating all disclosures 
fully fairly quickly and where circumstances permit 
confidentially undertakings are made to employees who raise 
genuinely held concerns in good faith under the procedure 
that they will not be dismissed or subjected to any detriment 
as a result of hisher action during the year all employees of 
the group were sent a reminder regarding the whistleblowing 
policy as part of a general refresher of various group policies 
no reports of incidents under the whistleblowing policy were 
received in 2013
diversity policy
details of the company’s diversity policy and involvement 
of women in management of the group are set out in the 
corporate responsibility section of the business review on 
pages 16 to 18
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
30 letter from the  
chairman of the audit committee
2312404   25 march 2014 624 am   proof 11
dear shareholder
the audit committee has continued to work over 2013 to improve the company’s risk management and reporting
in this report of the audit committee as regards the year ending 31 december 2013 we have made every effort to provide detailed 
information as to the activities of the committee over the course of the year noting the purpose of such activities and their results 
as well as to give shareholders some insight into the judgment calls made by the committee and the basis upon which they were 
made
the committee’s primary responsibility is to review the financial information provided to shareholders on behalf of the board to 
review the company’s internal financial controls and to oversee its relationship with the external auditors
the main agenda items at the four meetings of the committee in 2013 included reviewing the regular financial reports made to 
shareholders monitoring and reviewing the internal audit programme and reviewing the effectiveness of internal control systems 
details of the further work carried out by the committee are given in the report that follows the company’s chief executive 
officer and chief financial officer are invited to all the meetings of the committee however the committee also meets when 
appropriate with the external auditor without the presence of the executive directors or management
in addition during 2013 deloitte assisted the audit committee with its internal audit function in order to do this the internal 
auditor prepared a risk report on the basis of which work commenced on various internal audit projects regarding which the 
audit committee received periodic updates during 2013 the internal auditor produced three reports on issues of importance to 
the group which were received by the audit committee for comment and two of which have been finally approved the audit 
committee has further prioritised a list of internal audit issues to be examined by the internal auditor in 2014
in october 2013 the financial reporting council frc issued a report on the reporting of audit committees providing further 
insight from companies and investors on effective approaches to audit committee reporting in light of the changes to the uk 
corporate governance code the committee has sought in this report to include more detail on the specific matters raised by the 
frc as well as generally to increase the visibility of shareholders to the activities of the audit committee
amos pickel
chairman of the audit committee
25 march 2014
audit committee report
stock code 888
31
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membership
the audit committee is chaired by nonexecutive director 
amos pickel john anderson also served on the committee 
throughout the year the members of the committee are 
considered independent by the board having no dayto
day involvement with the company the board is satisfied 
that amos pickel has sufficient recent and relevant financial 
experience to chair the audit committee normally by 
invitation the chairman chief executive officer and chief 
financial officer and where appropriate representatives of 
the company’s external auditors attend the audit committee 
meetings in addition the committee meets with the external 
auditors in the absence of the company’ executive directors 
and management
roles and responsibilities
the audit committee’s terms of reference are available on the 
company’s website www888holdingsplccom
work of the committee
the audit committee assists the board in discharging its 
responsibilities with regard to financial reporting external and 
internal audits and controls including reviewing 888’s annual 
financial statements considering the scope of the annual 
audit and the extent of nonaudit work undertaken by external 
auditors approving 888’s internal audit programme advising 
on the appointment of external auditors and reviewing the 
effectiveness of internal control systems there is an ongoing 
process for identifying evaluating and managing significant 
risks faced by the group that was in place for the year under 
review and up to the date of approval of the report which is 
regularly reviewed by the board and accords with turnbull 
guidance the board is responsible for the group’s system of 
internal control and for reviewing its effectiveness which is 
designed to manage rather than eliminate the risk of failure to 
achieve business objectives and can only provide reasonable 
and not absolute assurance against material misstatement or 
loss we disclose below a summary of the processes the board 
and its committee applied in reviewing the effectiveness of the 
system and dealing with material internal control aspects of 
any significant problems disclosed in the report and accounts 
during the year the committee fulfilled this role by carrying 
out the following
  review of the terms of reference of the committee 
to ensure that they correctly reflect the roles and 
responsibilities of the committee in light of the recent 
developments
  review of the company’s interim and annual financial 
statements and the published interim management 
statements with particular focus on ensuring that – taken 
as a whole – the statements were fair balanced and 
understandable and provided the information necessary 
for shareholders to assess the company’s performance 
business model and strategy in this respect the committee 
considered the adequacy of the systems and controls 
on which management relies in preparing the accounts 
including procedures to ensure accuracy and completeness 
of information and to ensure consistency with information 
provided to the board throughout the year
  receipt and discussion of the internal audit program and 
reports from deloitte in its capacity as the company’s 
internal auditor as well as prioritizing the internal audit 
program for the upcoming year
  review of the legal and regulatory risks faced by the 
company and the manner in which such risks are 
monitored and addressed on an ongoing basis by the 
board
  review of the going concern position of the company 
considering all relevant factors the committee 
determined that the company remains a going concern
the audit committee assesses the effectiveness of the 
external audit process by establishing schedules and agendas 
for regular meetings with the auditors supervising the audit 
function directly to ensure that the auditors are independent 
and objective in their findings meeting with the auditors 
to assess their plans for the audit and working to ensure 
comprehensive audit coverage to meet the risks and demands 
posed by the company’s business 
during the year the committee fulfilled this role by carrying 
out the following
  meetings with the auditors at the planning stage and at 
completion of their review of the interim accounts at the 
planning and final stages of the year end audit within 
these meetings areas of significant interest that were 
discussed were as follows 
  review of the impairment tests applied to intangible 
assets in light of the future cash flows expected from 
such assets on the balance sheet and calculation of the 
appropriate discount rate 
  revenue recognition policies of the group and the 
systems and controls around the recording of income 
in the accounts
  taxation position of the group
  the appropriateness of the accounting in respect of 
the joint venture arrangements entered into by the 
group in the usa
  considering the adequacy of the company’s procedures 
for safeguarding the objectivity and independence of the 
external auditor and
  considering the implications for the company of the code 
as to putting the external audit out to tender at least once 
every ten years it is noted that this audit is provided under 
a joint arrangement within the same international firm 
structure and the relevant firm’s audit partners have been 
rotated every five years with the next individual partner 
rotation due in 2014 the committee is considering the 
requirement to put the external audit out to tender in the 
near future
audit committee report
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the appointment or reappointment of the external auditor is put 
to the vote of each annual general meeting prior thereto the 
audit committee considers the auditor’s performance during 
the year and forms a view as to whether to recommend that the 
present auditor be reappointed or an alternative be proposed 
as regards 2013 the audit committee formed the view that the 
external auditors performed their role in a professional manner 
and recommended that the auditor be reappointed for 2014 
at the next agm in may 2014 and if so appointed that they will 
hold office until the conclusion of the next general meeting of 
the company at which accounts are laid
bdo llp and bdo limited were appointed as the company’s 
external auditors in 2004 whilst the code requires companies 
to comply with the requirement to put the external audit out 
to tender once every ten years or explain their failure to do 
so the financial reporting council put forward some possible 
transitional arrangements including suggesting that companies 
which appointed their auditor post2000 may defer the tender 
process until after one more audit partner term in addition 
the competition commission proposals published in october 
2013 which are expected to pass into law in october 2014 
also provided for transitional arrangements which will require 
companies which have not tendered since the beginning of 
2005 to tender two years after the present partner rotation 
period ends as well as european regulations approved in 
december 2013 and which are expected to come into law 
within two years in the united kingdom but which currently 
contain no such transitional arrangements neither bdo llp 
nor bdo limited provides any material nonaudit services 
to the company the audit committee seeks to ensure that 
the company’s auditors are objective and independent by 
monitoring the appointment of the auditors for any nonaudit 
work involving fees above us01 million in 2013 the external 
auditors carried out nonaudit work for the company involving 
fees in the aggregate amount of us01 million
stock code 888
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directors’ remuneration report
dear shareholders
the new regime applying to directors’ remuneration reporting has introduced a number of requirements both in terms of 
formulating a written remuneration policy disclosing it to shareholders and putting it to vote at the annual general meeting and 
in terms of remuneration reporting including as to the manner in which the remuneration policy was implemented in the relevant 
period as well as other relevant matters regarding directors’ remuneration during the year
the company “early adopted” some of the reporting requirements in 2012 on a voluntary basis which has put it in an 
advantageous position to report in 2013 on its remuneration policy and other relevant matters it has done so even though it is 
incorporated in gibraltar and therefore is not legally required to comply with the new uk regulations on directors’ remuneration 
as such the board intends to put the remuneration policy set out in this report and the remainder of the report as a whole to 
shareholders for approval in two separate votes at the 2014 annual general meeting since the company is not a uk incorporated 
company and is not subject to the uk companies act 2006 nor the uk regulations on directors’ remuneration the two votes will 
be “advisory” votes this means that payments made or promised to directors would not have to be repaid if either of the votes 
were not passed and while the board intends to set directors’ remuneration in accordance with the remuneration policy subject to 
shareholder approval at the annual general meeting neither the board nor individual directors are legally bound by the policy
the board has determined that its remuneration policy shall come into force immediately after the annual general meeting subject 
to its approval by shareholders as from the effective date the board intends that all payments made by the company to its 
directors will be made in accordance with the remuneration policy existing obligations will continue to be met it is the company’s 
intention that the remuneration policy will remain in force until a new remuneration policy that has been approved by shareholders 
takes effect furthermore the company intends to again seek shareholder approval for its remuneration policy in three years’ time
the proposed remuneration policy seeks to align the company’s remuneration policy with company strategy and its approach 
to risk and on rewarding success fairly whilst avoiding paying more than is necessary to properly attract retain and motivate 
directors of appropriate calibre to the company’s business in adopting the policy the company confirms that there is a formal 
and transparent procedure for developing policy on executive remuneration and for fixing the remuneration packages of individual 
directors with no director being involved in deciding his own remuneration
annual statement
2013 was a record year for the group with revenue increasing by 7 compared to 2012 adjusted ebitda increasing by 13 and 
like for like adjusted ebitda increasing by more than 20 compared to 2012 during the year the board discussed with investor 
representative groups the remuneration of the executive directors amongst other matters during 2014 the remuneration 
committee will exercise its duties in accordance with the remuneration policy set out herein subject to its adoption by the annual 
general meeting
we hope that you will find the directors’ remuneration report informative and would be happy to discuss any feedback you may 
have
sincerely
amos pickel
chairman of the remuneration committee
25 march 2014
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
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introduction
the company presents its report on the remuneration of its 
directors for the year ended 31 december 2013 the company 
is incorporated in gibraltar and therefore is not required to 
comply with the uk companies act 2006 or the directors’ 
remuneration report requirements in schedule 8 to the uk 
large and medium sized companies and groups accounts 
and reports regulations 2008 as amended but has chosen 
to prepare this remuneration report on the basis of those 
requirements as appropriate
the report sets out the remuneration policy proposed to be 
put to the 2014 annual general meeting together with the 
structure and details of the remuneration of the directors 
for the year ended 31 december 2013 a report regarding 
implementation of the remuneration policy will be included 
in future annual reports relating to periods during which the 
remuneration policy is effective the report also describes 
the board’s policy and approach to the principles of good 
governance relating to directors’ remuneration contained in the 
uk corporate governance code 
a resolution to approve the directors’ remuneration report 
is proposed annually to shareholders for approval this 
remuneration report and the remuneration policy will each 
be put to shareholder votes at the upcoming annual general 
meeting as stated above the advisory nature of the votes 
due to the company’s incorporation in gibraltar means that 
obligations to make payments to directors would continue 
to be enforceable in the event that either of the votes is not 
passed and neither the board nor individual directors are 
legally bound by the remuneration policy
remuneration policy
executive directors
remuneration packages must be sufficient to attract retain 
and motivate directors of the calibre appropriate to a global 
business in a competitive environment the remuneration 
committee is mindful that many of the group’s competitors 
are not uk listed companies and acknowledges the unique risk 
profile associated with online businesses of the nature of the 
group’s and takes these matters into account in determining 
appropriate remuneration levels the components of the 
remuneration structure are set out below
at least half of the total potential remuneration of the chief 
executive officer and the chief financial officer is represented 
by a variable element dependent on the performance of the 
group the remuneration committee considers that these 
represent achievable and motivational levels of personal 
rewards commensurate with stipulated levels of corporate 
performance
the remuneration committee is mandated by the board 
to satisfy itself that the level of the directors’ and senior 
management’s remuneration is appropriate having regard 
to pay and conditions throughout the sectors in which 
the group operates as well as pay and conditions of 
employees throughout the group it further ensures that such 
remuneration aligns with the risks and rewards to shareholders 
in this context the remuneration committee regularly 
reviews individual and corporate performance targets and 
uses careful and rigorous judgment to match remuneration to 
achievements
the remuneration committee applies a remuneration policy 
which has at its core the following objectives
  to align the incentives of executives with the interests of 
shareholders including being mindful of employee costs 
in light of the company’s capital needs and return to 
shareholders
  to focus on topline growth and margin improvement
  to link a significant proportion of remuneration to financial 
and individual performance as well as shareholder return 
both in the short term and long term
  to provide strong linkage between remuneration 
performance and delivery of company strategy and
  to ensure total remuneration is marketcompetitive in the 
industry and helps attract and retain executives of the 
highest calibre
stock code 888
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the following is the company’s remuneration policy to be put to an advisory vote of the shareholders at the annual general 
meeting of the company scheduled to be held on 14 may 2014 
chart 1 future policy table
remuneration 
component purpose how it operates opportunity performance metrics
base salary provide an attractive 
pay package taking 
into account the risks 
and responsibilities 
of the role in order 
to attract retain and 
motivate directors of 
suitable calibre 
the executive directors’ 
base salaries are subject to 
annual review at the time 
of the publication of the 
annual financial statements 
with effect from 1st 
january of the same year 
the company considers 
that the executive 
directors’ personal 
performance is best 
measured in accordance 
with the performance of 
the company as a whole 
taking into account any 
changes in the level of 
responsibilities of the 
executive directors 
therefore in determining 
salary levels and raises the 
remuneration committee 
has regard to the pay and 
conditions of comparable 
companies in the same 
sector including the ftse 
250 index
the remuneration 
committee has regard 
to the last reported 
median salary level of 
the upper quartile of 
ftse 250 companies in 
determining base salary 
the executive directors 
will generally not be 
paid more than 5 
over such last reported 
upper quartile median 
except in circumstances 
of significant changes in 
responsibilities
payment of base salary is not subject 
to performance conditions however 
in reviewing salaries the remuneration 
committee takes into account pay 
and conditions elsewhere across 
the group relevant market data and 
benchmarking and the individual 
director’s performance and experience 
benchmarking is carried out on a total 
remuneration basis and takes account 
of pay levels for comparable roles at a 
range of organisations of similar size 
and sector no recovery or withholding 
applies to salary current salary levels 
of the executive directors are set out 
on page 42
benefits provide an attractive 
benefits package 
taking into account 
the risks and 
responsibilities of the 
role in order to attract 
retain and motivate 
directors of suitable 
calibre 
benefits may include cost 
of or an allowance toward 
accommodation where 
the company has required 
the executive director to 
relocate use of company 
car car allowance health 
insurance or contribution 
towards health insurance 
scheme disability and 
life insurance directors’ 
indemnities and directors’ 
 officers’ insurance to the 
extent permitted by law 
pension or payment in lieu 
thereof at the discretion 
of the remuneration 
committee 
benefits will be 
market competitive 
taking into account 
the role and the local 
market  the value 
will be appropriate 
to the individual 
circumstances of the 
individual executive 
director the current 
package of benefits 
will be maintained 
but the value may 
fluctuate depending 
amongst other things 
on insurance costs 
and an individual’s 
circumstances
benefits are not subject to 
performance conditions no recovery 
or withholding applies to benefits 
current benefit levels of the executive 
directors are set out on page 42
shortterm 
incentives
provide a challenging 
framework to 
incentivize executive 
performance and align 
executive incentives to 
shareholder interests
an annual bonus becomes 
payable following the 
approval of the group’s 
annual results at the 
annual general meeting 
in accordance with the 
performance criteria set 
by the remuneration 
committee at the 
beginning of the financial 
year the annual bonus 
may be paid following 
release of the annual 
financial results as the 
remuneration committee 
may determine in its 
discretion provided that 
any such earlier bonus 
payment shall be subject 
to clawback the bonus 
can be paid in cash or 
shares at the discretion 
of the remuneration 
committee
targets are set in light 
of company growth 
and market conditions 
the remuneration 
committee considers 
the target adjusted 
ebitda growth metric 
as being appropriate for 
determining challenging 
performance targets 
maximum opportunity 
is 100 of base salary
maximum bonus award is 100 of base 
salary for each of the ceo and cfo 
calculated on a linear scale based on 
likeforlike adjusted ebitda growth 
ie with the adjustment for exceptional 
items relating to the changing 
regulatory environment to arrive at 
a likeforlike adjusted ebitda as 
determined by the remuneration 
committee the threshold likefor
like adjusted ebitda growth and the 
likeforlike adjusted ebitda growth 
giving rise to maximum bonus award 
are determined by the remuneration 
committee in accordance with the 
executive directors’ annual targets no 
bonus is paid where growth is below 
threshold likeforlike adjusted ebitda 
growth and a bonus is only payable 
where adjusted ebitda is above 
budget for the year as approved by 
the board whilst not implemented at 
present the remuneration committee 
may decide to apply clawback or 
malus to shortterm incentive grants 
to executive directors recruited in 
future at its discretion and pursuant 
to the employment agreement of such 
executive director
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
36 2312404   25 march 2014 624 am   proof 11
remuneration 
component purpose how it operates opportunity performance metrics
longterm 
incentives
encourage 
executives 
to create 
longterm 
shareholder 
value aligned 
with the 
timing of 
implementation 
of the 
company’s 
longterm 
strategy
the following is a summary of the 
longterm incentive plans currently 
utilized by the company other plans 
or amendments to the existing plans 
may be utilized at the discretion of the 
remuneration committee and subject to 
any required shareholder approvals
888 allemployee share plan
the company currently grants awards 
under the 888 allemployee share plan
all employees consultants and executive 
directors of the group who are not within 
six months of their normal retirement age 
are eligible to participate in the 888 all
employee share plan at the discretion of 
the remuneration committee 
awards under the 888 allemployee 
share plan can either be granted for 
no consideration or with a nil exercise 
price for options or at an exercise 
price that will normally be no less than 
the market value of an ordinary share 
at the time of grant or average share 
price during a period as determined 
by the remuneration committee at 
time of grant in countries where an 
award or option involving real shares 
is not appropriate or feasible for legal 
regulatory or tax reasons a phantom 
award may be used which will pay a 
cash sum to an equivalent value in lieu of 
shares
the maximum number of ordinary shares 
that an eligible employee may acquire 
pursuant to share awards or options 
granted to such person in any calendar 
year under the 888 allemployee share 
plan and the 888 longterm incentive 
plan may not have an aggregate market 
value as measured at the date of grant 
exceeding 200 of such person’s annual 
base salary or such higher limit as the 
remuneration committee may determine 
is appropriate in any individual case
awards vest over a fixed period of up to 
four years from the date determined by 
the remuneration committee at the time 
of grant the remuneration committee 
may determine that the vesting and 
release or exercise of share awards and 
options under the 888 all employee 
share plan are subject to performance 
conditions imposed at the time of grant
the vesting of awards is subject to any 
applicable performance conditions 
and continued employment during the 
vesting period with exceptions where 
the executive director leaves for certain 
“good reasons” including illhealth injury 
disability timely retirement disposal of 
employing company or business by the 
group or other reasons determined by 
the remuneration committee  awards 
will vest early in the event of a change 
of control of the company and in such 
event may be exercised within one month 
of the date on which the relevant event 
occurs or otherwise lapse automatically 
provided that the board may determine 
instead that outstanding awards shall 
instead be exchanged for new awards 
which in the opinion of the board are 
equivalent thereto but relate to shares in 
a different company 
the executive 
directors are 
granted nil 
cost options or 
shares for no 
consideration 
on an annual 
basis following 
the publication 
of the group’s 
annual results 
the total grant 
allocation to 
each executive 
director under 
the all employee 
plan is equal 
to 100 of 
such executive 
director’s salary 
converted into 
shares of the 
company by 
reference to the 
prevailing market 
value of a share 
at the time of 
grant 
share awards or nil cost options issued 
with performance criteria are subject to 
3 year cliff vesting with equally weighted 
dependence on epsbased and tsrbased 
metrics
the performance conditions of nil cost 
options or free shares are measured over 
a period of 3 years commencing from the 
beginning of the financial year in which the 
award is granted with 50 of such share 
awards or options dependent upon the 
achievement of a performance condition 
based on cumulative growth in earnings 
per share eps over such threeyear 
period adjusted on a likefor like basis and 
the other 50 of such share awards or 
options dependent upon the achievement 
of a performance condition based on 
relative total shareholder return tsr 
compared to a defined peer group median 
over such threeyear period 
the threshold compound eps growth 
rate as well as the compound eps growth 
rate and annual relative tsr giving rise to 
maximum vesting are determined by the 
remuneration committee in accordance 
with executive directors’ annual targets 
with regard to the share awards or options 
subject to the eps performance condition 
where the compound annual eps growth 
rate is between the threshold compound 
eps growth rate and the compound 
eps growth rate giving rise to maximum 
vesting such share awards or options vest 
on a linear scale between 25 and 100 
of the shares under the eps element 
with an eps growth rate of below the 
threshold compound eps growth rate 
not allowing any vesting with regard to 
the share awards or options subject to 
the tsr performance condition where 
the company’s tsr over the vesting 
period is between the median of a peer 
group determined by the remuneration 
committee and the tsr over the vesting 
period above such median giving rise to 
maximum vesting such share awards or 
options vest on a linear scale between 
25 and 100 of the shares under the tsr 
element with tsr below such median not 
allowing any vesting  the peer group for 
the tsr performance condition determined 
by the remuneration committee is 
presently as follows with respect to awards 
made to date however the remuneration 
committee will reconsider the composition 
of such peer group on an annual basis 
prior to the grant of any share awards or 
options
  bwinparty digital entertainment plc
  sportech plc
  ladbrokes plc
  playtech ltd and
  paddy power plc
the above conditions applied to all awards 
under the 888 allemployee share plan to 
the executive directors from 1 january 2012 
and to an award over 1175373 ordinary 
shares of the company made to aviad 
kobrine on 24 may 2011
whilst not implemented at present the 
remuneration committee may decide 
to apply clawback or malus to longterm 
incentive grants to executive directors 
recruited in future at its discretion and 
pursuant to the employment agreement of 
such executive director
stock code 888
37
www888holdingsplccom governance 2312404   25 march 2014 624 am   proof 10
future policy table
remuneration 
component purpose how it operates opportunity performance metrics
longterm 
incentives
provide an attractive 
pay package taking 
into account the risks 
and responsibilities 
of the role in order 
to attract retain and 
motivate directors of 
suitable calibre 
888 longterm incentive plan
all employees and executive 
directors of the group who 
are not within six months of 
their normal retirement age are 
eligible to participate in the 888 
longterm incentive plan at the 
discretion of the remuneration 
committee as at the date of 
this report no awards have been 
granted pursuant to the 888 
longterm incentive plan as 
set out above the company has 
given longterm incentive awards 
to executive directors under the 
888 allemployee share plan
awards and options granted 
under the 888 longterm 
incentive plan may be satisfied 
through the issue of new shares it 
is intended that grants of options 
and awards are to be planned 
so as not to exceed 5 of the 
issued ordinary share capital in 
any rolling ten year period for the 
888 longterm incentive plan 
and 10 of the issued ordinary 
share capital as at the company’s 
initial public offering in any rolling 
ten year period for the 888 all
employee share plan and the 888 
longterm incentive plan in the 
aggregate the committee has 
regard to appropriate annual flow
rates so as to ensure that these 
limits are not breached
this plan is presently 
not in use
this plan is presently not in 
use and the remuneration 
committee does not intend to 
operate this plan during the life 
of the remuneration policy
longterm 
incentives
employee trusts
the company established a 
trust to further the interests of 
the company its subsidiaries 
and shareholders by providing 
share incentives to employees 
including executive directors 
of any group company to enable 
the group to attract retain and 
motivate employees 
the 888 holdings plc share plan 
trust currently holds 46432 
ordinary shares in the company
no recovery or withholding 
applies under the 888 holdings 
plc share plan trust
this plan is presently 
not in use except for 
shares already held in 
the share plan trust
this plan is presently not in use 
except for shares already held in 
the share plan trust
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
38 2312404   25 march 2014 624 am   proof 11
remuneration 
component purpose how it operates opportunity performance metrics
longterm 
incentives
phantom share award
generally in circumstances where the grant 
of equity may give rise to dilution in excess 
of limits set down in institutional investor 
guidelines a phantom share award may be 
granted 
brian mattingley was granted a phantom 
share award by the company pursuant 
to his employment agreement dated 27 
march 2012 
the phantom share award provides 
that mr mattingley will be entitled to a 
onetime cash sum on the vesting date 
of 27 march 2015 provided that he is in 
employment with the company at that 
time the amount payable is calculated on 
an incremental basis based on the average 
share price of the company over a period 
of 20 dealing days prior to the scheduled 
vesting date for the award the minimum 
amount payable is £250000 and the 
maximum payable is £5500000
specifically where the company’s average 
share price is less than 50p in the 20 
dealing days prior to the scheduled 
vesting date a minimum award amount 
of £250000 is payable where the share 
price is between 50p and 60p the award 
payable is calculated on a straightline 
basis between £250000 and £450000 
for each additional 10p above a share 
price of 60p up to £1 an incremental 
amount of £200000 is payable for each 
additional 10p above a share price of £1 
and up to £120 an incremental amount of 
£300000 is payable for each additional 
10p above a share price of £120 and up to 
£160 an incremental amount of £400000 
is payable and for each additional 10p 
above a share price of £160 up to £200 
an incremental amount of £500000 is 
payable up to a maximum payment of 
£5500000 
the phantom award will also vest if mr 
mattingley leaves employment before the 
normal vesting date for any reason unless 
he resigns or the company dismisses him 
summarily in accordance with the terms 
of his contract for example for gross 
misconduct the average share price will 
normally be calculated by reference to 
the 20 day period up to the date of the 
termination of employment however if the 
company has terminated mr mattingley’s 
employment under notice he may request 
the average share price to be calculated 
either by reference to the period up to the 
service of the notice or the normal vesting 
date of 27 march 2015 as he chooses if 
there is a change of control the average 
share price will be calculated by reference 
to the period up to the change of control 
the fair value of mr mattingley’s award 
at 31 december 2013 has been externally 
evaluated at £19 million with the company 
recording a charge in the amount of £14 
million in its 2013 £05 million in 2012 
accounts in respect of the amount earned 
in the year
the maximum 
amount 
payable is 
£5500000 
for the 
achievement 
of an average 
share price of 
at least £200 
over the 20 
dealing days 
prior to  
27 march 2015 
phantom awards are subject to 3 year 
cliff vesting and grant a onetime cash 
sum on the vesting date provided that the 
executive director is in employment with 
the company at that time 
whilst not implemented at present the 
remuneration committee may decide 
to apply clawback or malus to phantom 
grants to executive directors recruited in 
future at its discretion and pursuant to the 
employment agreement of such executive 
director
stock code 888
39
www888holdingsplccom governance 2312404   25 march 2014 624 am   proof 10
determination of performance measures
the performance measures adopted by the company in 
determining the remuneration of its executive directors 
acknowledge that the performance of the executive directors 
is best measured in accordance with the performance of 
the company as a whole for this reason the remuneration 
policy has regard to various financial measures including 
both internal measures such as likeforlike adjusted ebitda 
growth and cumulative growth in earnings per share adjusted 
to compare like for like as well as relative t otal shareholder 
return compared to a peer group median which the company 
believes best reflects the interests of shareholders in general 
the company seeks to remunerate its executive directors in line 
with comparable roles at other companies in the same market 
taking into account the scope of roles and responsibilities of the 
executive directors similarly the company seeks to remunerate 
its employees generally in line with comparable roles of 
personnel located in comparable locations
recruitment of new directors
the company is aware of its need to attract and retain new 
directors of suitable calibre to its business and determines 
the remuneration packages it offers by taking into account the 
global nature and competitive environment of its business 
the principles to be applied by the company in agreeing the 
components of a remuneration package for the appointment of 
a new executive director will include the following
  in general the total compensation package offered to a 
new executive director will not exceed the upper quartile 
total compensation package of the ftse 250
  insofar as practicable the remuneration proposed for 
a new executive director would be consistent with the 
”future policy” table set out above
  in order to secure an appropriate candidate it may be 
necessary to offer a higher base salary than that offered to 
the current executive directors
  there may be a need to compensate a newly recruited 
executive director for forfeiting remuneration from 
existing employment the company may award a newly 
recruited executive director a signing bonus or retention 
bonus which may be paid in the form of cash options 
andor shares and may rely on listing rule 942 to put 
an appropriate arrangement in place upon recruitment 
if the remuneration being forfeited was subject to the 
achievement of performance conditions the compensation 
awards will be subject to company performance 
conditions and where practicable will mirror the vesting 
schedule of the remuneration being forfeited
  the company will not pay more than is necessary to 
attract a suitable individual for the role 
  relocation benefits may be applicable where the newly 
recruited executive director is required by the company 
to relocate
  other benefits may also be payable including business 
expense reimbursement car or car allowance health 
insurance or contribution towards health insurance scheme 
pension or payment in lieu of pension life insurance 
holiday pay sick pay and other statutory benefits
  where an existing employee is promoted to the board 
existing contractual entitlements including any outstanding 
share and cash awards and pension entitlements will be 
honoured
  the remuneration committee may negotiate inclusion 
in a newly recruited executive director’s employment 
agreement a clawback or malus mechanism as regards 
shortterm or longterm incentives andor a mitigation 
mechanism regarding shortterm and longterm incentive 
payments made during the executive directors’ unexpired 
notice period where such executive director is engaged in 
other employment during such period 
  the company will make timely disclosure of the 
remuneration structure of any new executive director or 
chairman in a ris
directors’ service agreements and termination benefits
details of the directors’ service agreements are set out in 
charts 6a and 6b on page 44 
it is the company’s policy that each executive director’s 
service agreement is terminable on no more than 12 months’ 
written notice by either party the notice period applying 
to both brian mattingley’s and aviad kobrine’s employment 
is 12 months each executive director’s employment can 
be terminated by making a payment equal to the salary 
and pension contributions if any and the value of other 
contractual benefits due to the executive director in lieu of any 
unexpired notice period the executive directors shall continue 
to be entitled to be paid a bonus and in brian mattingley’s case 
to payment of his phantom share award as described on page 
39 in respect of any unexpired part of the notice period even 
if the employment is terminated by making payment in lieu 
of notice no other benefits upon termination of employment 
are payable each executive director’s employment can be 
terminated without compensation in circumstances where the 
employer is entitled to terminate for cause as defined for the 
purposes of the service agreement an executive director’s 
entitlement to share awards and share options under the 888 
allemployee plan on termination of employment are governed 
by the terms of that plan pursuant to which if the termination 
occurs for various “good reasons” set out in the plan details 
set out on page 37 any vested but unexercised awards may 
be exercised or released within six months after such cessation 
whilst any unvested portion automatically lapses unless 
determined otherwise by the remuneration committee in 
exercising its discretion the remuneration committee will have 
regard to the circumstances of the termination and any special 
circumstances of the executive director in determining whether 
to extend the exercise period by an additional short period 
the directors’ service contracts are available for inspection 
at the company’s registered office at any time during normal 
business hours on any weekday saturdays sundays and public 
holidays excepted
remuneration scenarios
the first financial year in which the remuneration policy applies 
is 2014 the following graphs set out the minimum target and 
maximum remuneration presently expected to be payable to 
each of the executive directors in that year
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
40 2312404   25 march 2014 624 am   proof 11
chart 2 — remuneration scenarios
brian mattingley 
maximum
52
 
48
   
target
59
 
41
 
minimum
100
  
■ fixed    ■ short term incentive    ■ long term incentive
1400 1200 1000 800
’000
600 400 200 
aviad kobrine
44 27 29
37 30 33
maximum
 
target
  
minimum
100
  
■ fixed    ■ short term incentive    ■ long term incentive
2000 1500 1000
’000
500 
the following assumptions were used in the above graphs
fixed salary brian mattingley’s and aviad kobrine’s fixed 
salaries for 2014 are set out on page 43
benefits the graph assumes that brian mattingley’s and aviad 
kobrine’s benefits are as set out on page 42 below
shortterm incentive the maximum bonus payable to each 
of brian mattingley and aviad kobrine is equal to one year’s 
salary the graph assumes that the executive directors’ 2014 
target performance which the board considers stretching will 
give rise to entitlement of 75 of the maximum award amount
longterm incentive the  graph assumes no further phantom 
grants to brian mattingley in 2014 and therefore there is 
no longterm incentive component of brian mattingley’s 
compensation in 2014 aviad kobrine’s nil cost options are 
granted subject to the performance conditions set out in the 
remuneration policy the graph assumes that the executive 
directors’ 2014 target performance which the board considers 
stretching will give rise to vesting of 75 of the maximum 
award amount the graph assumes that the share price 
remains at the same share price as at 31 december 2013 
finally it should be noted that the graph shows the potential 
remuneration opportunity granted in the relevant year rather 
than what actually vests and is received in such year
policy on exit payments and loss of office
the remuneration committee will consider a director’s 
past performance the circumstances of and the reasons for 
his departure prevailing best practice and any transition
handover required in exercising any discretions relating to 
his arrangements for loss of office including his contractual 
arrangements his participation in an annual bonus scheme and 
awards under the 888 allemployee share plan
consideration of shareholder views on remuneration
the remuneration committee intends to establish a program of 
consultation with significant investors the board engages with 
significant investors regarding remuneration issues and intends 
to continue doing so
consideration of employee views on remuneration
whilst the company does not formally consult employees 
on remuneration in determining the remuneration policy for 
executive directors the committee takes account of the policy 
for employees across the workforce in particular when setting 
base salaries for executives the committee compares the 
salary increases with those for the workforce as a whole 
the overall remuneration policy for executive directors is 
broadly consistent with the remainder of the workforce 
executive remuneration and remuneration of senior employees 
is weighted towards performancerelated pay the company 
has introduced equity based schemes for senior employees 
albeit at lower quantum which are similar to those of the 
directors
stock code 888
41
www888holdingsplccom governance 2312404   25 march 2014 624 am   proof 10
chart 3 — nonexecutive directors
remuneration component purpose how it operates
fees duly compensate 
nonexecutive 
directors taking 
into account the 
risks of the role in 
order to attract and 
retain nonexecutive 
directors of suitable 
caliber
the chairman and the executive directors determine the fees paid  
to the nonexecutive directors the chairman’s fees are determined 
by the remuneration committee with reference to prevailing fee rates 
amongst the upper quartile of ftse 250 companies fees paid to 
the nonexecutive directors are set by reference to an assessment 
of the time commitment and responsibility associated with each 
role and the remuneration committee has reference in this respect 
to prevailing fee rates amongst the upper quartile of ftse 250 
companies levels take account of additional demands placed upon 
individual nonexecutive directors by virtue of their holding particular 
offices such as committee chairman andor deputy chairman 
and travel time to board meetings at the group’s headquarters in 
gibraltar the fees paid to each nonexecutive director during 2013 
are disclosed in the directors’ remuneration summary on page 43 
other benefits the chairman and the nonexecutive directors are not eligible to 
participate in any bonus plan pension plan share plan or longterm 
incentive plan of the company the chairman and nonexecutive 
directors are covered by the company’s directors’  officers’ 
insurance policy and are entitled to indemnification in accordance 
with the company’s articles of association in addition the chairman 
receives a cash amount covering life insurance and health insurance 
expenses the amount paid to the chairman during 2013 is disclosed 
in the directors’ remuneration summary on page 43
nonexecutive directors’ appointments which are for a term of 
three years may be terminated by the company without notice 
in accordance with the company’s articles of association 
and the gibraltar companies act except for the chairman 
who is required to be given six months’ prior written notice of 
termination no compensation is payable on the termination of 
the appointment
annual remuneration report
the following tables set out the remuneration received by the executive directors and nonexecutive directors in 2012 and 2013
chart 4a — single total figure executive directors
brian mattingley ceo
’000
aviad kobrine cfo
’000
salary
2012
2013
495
590
550
562
benefits
2012
2013
59
63
40
46
short term incentives
2012
2013
506
622
561
592
long term incentives
2012
2013
—
—
—
—
pension
2012
2013
—
—
83
84
other items in the nature of 
remuneration
2012
2013
—
—
767
624
total
2012
2013
1060
1275
2001
1908
 
 directors remuneration is converted from sterling into us at the average rate of exchange for the relevant month it was paid save for the annual 
cash bonus which is converted into us at the year end exchange rate
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
42 2312404   25 march 2014 624 am   proof 11
salary in 2013 brian mattingley’s annual salary was £377000 
and aviad kobrine’s annual salary was £359000
1
 in 2014 brian 
mattingley’s annual salary will be £396000 and aviad kobrine’s 
annual salary will be £377000
1
 these amounts are converted 
into usd in the single total figure table in accordance with the 
gbpusd exchange rate as at 31 december 2013
benefits benefits provided to brian mattingley in 2013 include 
the provision of accommodation and the use of a company car 
at the company’s expense benefits provided to aviad kobrine 
include a car allowance and health disability and life insurance
shortterm incentives the sole shortterm incentives 
applicable to brian mattingley and aviad kobrine in 2012 
and 2013 were their annual bonuses in both cases the 
performance conditions set out in the remuneration policy 
applied specifically threshold performance for 2013 was 5 
year on year adjusted ebitda growth and target performance 
for 2013 which was considered a stretching target was 15 
yearonyear adjusted ebitda growth which would have given 
rise to payment of 75 of the executive directors’ bonuses in 
fact yearonyear adjusted ebitda growth for 2013 adjusted 
to arrive at a like for like basis exceeded 20 thus giving rise 
to payment of 100 of the executive directors’ bonuses the 
2013 adjusted ebitda performance also exceeded budgeted 
ebitda for 2013
longterm incentives the longterm incentives applicable to 
aviad kobrine in 2012 and 2013 were governed by the 888 all
employee share plan however no performancebased grants 
under the 888 allemployee share plan were due to vest in 
2012 and 2013 and therefore no vesting occurred as regards 
brian mattingley the phantom award is due to vest in 2015 and 
therefore no longterm incentive figure appears in the table for 
2012 and 2013 
pensions in 2013 brian mattingley had no pension entitlement 
from the company aviad kobrine is entitled to a cash payment 
in lieu of an annual contribution to his personal pension scheme 
of 15 of his base salary
other items in the nature of remuneration aviad kobrine 
benefited in 2012 and 2013 from vesting of awards under the 
888 allemployee share plan granted to him in previous years 
the value of the vested awards is determined in accordance 
with the share price as of the vesting dates being 448p on 15 
january 2012 705p on 24 may 2012 and 1602p on  
24 may 2013
chart 4b – single total figure nonexecutive directors 
john 
anderson
’000
amos 
pickel
’000
richard 
kilsby
’000
salary 2012 122 122 366
2013 120 120 361
total 2012 122 122 366
2013 120 120 361
scheme interests awarded
the following table sets out the longterm incentives awarded 
to the executive directors under the 888 allemployee share 
plan in 2013
chart 5 – scheme interests awarded
executive 
director
scheme 
interest award
face 
value of 
award 
us
percentage 
receivable 
on threshold 
performance
date on 
which 
performance 
measurement 
period ends
aviad 
kobrine
 long term 
incentives  
performance 
nil cost 
options 
531695 25 07 042016
basis of awards awards were made in 2013 only to aviad 
kobrine details of the phantom award to brian mattingley 
in 2012 are detailed separately the total grant allocation to 
eligible executive directors is equal to 100 of such executive 
director’s salary converted into shares of the company by 
reference to the prevailing market value of a share at the time 
of grant the prevailing share price at the date of the award 
was £163
performance conditions the performance conditions applying 
to the grants are as set out in the remuneration policy 
payments to past directors and payments for 
loss of office
no payments were made by the company in 2013 to any past 
director or for loss of office by any director
1
 part of which is paid by the company and part by cassava enterprises gibraltar limited
stock code 888
43
www888holdingsplccom governance 2312404   25 march 2014 624 am   proof 10
directors’ service contracts
chart 6a – directors’ service contracts executive directors
executive directors
name position contracting party
service 
contract date
unexpired term 
of service contract
brian mattingley chief executive officer the company 27 032012 indefinite subject to termination provisions 
set out in the service agreement
aviad kobrine chief financial officer the company 14092005 indefinite subject to termination provisions 
set out in the service agreement
aviad kobrine chief financial officer cassava enterprises 
gibraltar limited
 1
14092005 indefinite subject to termination provisions 
set out in the service agreement
1 
wholly owned subsidiary of the company
chart 6b – directors’ service contracts nonexecutive directors 
nonexecutive directors
the chairman and the nonexecutive directors do not have service contracts but have signed letters of appointment
name position contracting party
service 
contract date
 unexpired term 
of appointment
richard kilsby chairman the company 01032013 until 01032016 subject to reelection at 
each annual general meeting
john anderson nonexecutive director the company 01032013 until 01032016 subject to reelection at 
each annual general meeting
amos pickel nonexecutive director the company 01032013 until 01032016 subject to reelection at 
each annual general meeting
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
44 2312404   25 march 2014 624 am   proof 11
directors’ shareholdings and scheme interests
the following table sets out the shareholdings and scheme interests held in 2013 by the executive directors and nonexecutive 
directors no director is required to own shares in the company there have been no changes in directors’ interests in shares of the 
company between 31 december 2013 and the date of this report
chart 7 – directors’ shareholdings and scheme interests
during 2013 aviad kobrine exercised and sold 257827 ordinary 
shares under nil cost options in addition to selling 427563 
shares john anderson sold 450000 shares
no director was materially interested during the year in any 
contract which was significant in relation to the business of 
the company 
the parts of the directors’ remuneration report from chart 
4a – single total figure to this point have been audited by bdo 
llp and bdo limited in accordance with schedule 8 to the 
large and mediumsized companies and groups accounts 
and reports regulations 2008 
total shareholder return 
the chart below shows the value of an investment of £100 
sterling in the company’s shares and in the ftse 250 index 
over a five year period ending 31 december 2013 the directors 
have chosen the ftse 250 index as the most appropriate 
comparator index as the company was a constituent member 
until october 2006 was reincluded in that index from 
february 2008 until 2010 was on the reserve list in 2012 and 
was readmitted as a full member in 2013 
share 
interests
unvested 
options 
with 
performance 
conditions
unvested 
options 
without 
performance 
conditions
vested 
unexercised 
options 
with 
performance 
conditions
vested 
unexercised 
options 
without 
performance 
conditions total
aviad kobrine 15620 2013473  493657  94501 1146360 3763611 
brian mattingley 142857     142857 
richard kilsby 114285     114285 
amos pickel 100000     100000 
john anderson 138869      138869 
ordinary shares
nil cost options
stock code 888
45
www888holdingsplccom governance 2312404   25 march 2014 624 am   proof 10
chart 8  value of £100 in 888 over 5 year period ending 31 december 2013 v ftse 250 index 
0
50
100
150
200
250
300
112009
142009
172009
1102009
112010
142010
172010
1102010
888 div reinvest ftse 250 index
112011
142011
172011
1102011
112012
142012
172012
1102012
112013
142013
172013
1102013
performance graph and table
the following table sets out details of the chief executive’s remuneration during the period 1 january 2009 – 31 december 
2013 it is noted that gigi levy served as chief executive of the company until 30 april 2011 and that brian mattingley 
was appointed fulltime chief executive officer in march 2012 during the interim period brian mattingley took on certain 
executive duties
chart 9 – ceo performance
2009 2010 2011 2012 2013
t otal remuneration ’000 1168  958  3783  1060  1275 
short term incentives —  compared to maximum 
possible
100 100 100 100 100
long term incentives —  compared to maximum 
possible
68 0 100 0 0
ceo remuneration – percentage change
the following table sets out the percentage change in salary  
fees benefits and shortterm incentives from financial year 2012 
to financial year 2013 for both the ceo and employees of the 
group taken as a whole
chart 10 – ceo remuneration – percentage change
percentage 
change in ceo 
2012 vs 2013
average percentage 
change for all 
employees 
2012 vs 2013
salary 8 3
benefits 6 7
short term incentives 11 9
notes
  the salary figure includes base salary together with other 
payments made to the employees eg sick pay vacation 
pay but excluding discretionary bonuses
  the benefits figure includes benefits granted to employees 
which are not part of salary eg medical insurance meals 
further education fund
  pension amounts are not included
  the shortterm incentives figure solely includes bonuses 
which are based on an estimation by the company based on 
the bonus accrual since bonuses are generally paid to group 
employees in april in respect of the previous financial year
  ceo wage and sti were normalized in 2012 to present 
a full year as brian mattingley was appointed as chief 
executive officer as of 27 march 2012
  ceo benefits include the provision of accommodation
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
46 2312404   25 march 2014 624 am   proof 11
chart 11 – relative importance of spend on pay
the following graph sets out the actual expenditure by the 
company in financial years 2012 and 2013 on various items 
including on remuneration to group employees
employee pay 
 beneﬁts
160
us millions
0
20
40
60
80
100
120
140
selling  marketing 
expenses
dividends taxes
■ 2013
■ 2012
the comparables chosen were the following
  the employee pay figure includes employee benefits in 
accordance with the financial statements including both 
staff costs and share benefit charges
  sales and marketing expenses – this reflects the amount 
invested in development of the future revenue stream of 
the group driven by customer acquisition
  dividends – this reflects amounts distributed to 
shareholders
  taxes and duties – this is a necessary cost of doing 
business in a regulated business environment
implementation of the remuneration policy
the performance targets applying to directors’ remuneration in 
2014 are considered commercially sensitive the remuneration 
committee intends to disclose these performance targets 
retrospectively in the 2014 remuneration report
the salary to be paid to the executive directors in 2014 is set 
out on page 43 brian mattingley is entitled in 2014 to use of 
company car benefits payable to aviad kobrine in 2014 will be 
paid on the same basis as 2013 as set out on page 43 payment 
of shortterm incentives and vesting of longterm incentives 
will occur in accordance with the remuneration policy and the 
performance targets set by the remuneration committee as 
stated above
remuneration committee advice
the remuneration committee consisted solely of independent 
nonexecutive directors currently amos pickel chair 
and john anderson as a member of the ftse 250 index 
throughout 2013 and on the reserve list in 2012 the company 
is required to have three independent nonexecutive directors 
on its remuneration committee as such the company 
continues to seek suitably experienced nonexecutive directors 
to expand its board and committee membership details of 
attendances at committee meetings are contained in the 
statement on corporate governance on pages 27
the remuneration committee’s remit includes such matters as
determining and agreeing with the board the remuneration 
policy with regard to the company’s chairman chief executive 
officer chief financial officer and other members of the 
executive management 
regularly reviewing the ongoing appropriateness and 
relevance of the company’s remuneration policy
setting and monitoring performance criteria for bonus 
arrangements operated by the group ensuring that they 
represent achievable and motivating rewards for appropriate 
levels of performance and where appropriate are justifiable 
taking into account the company’s and its group’s overall 
performance and the corresponding return on shareholders’ 
investment in the same period
recommending to the board the policy for and scope of 
pension arrangements for the executive directors and 
in relation to the company’s share option and share award 
schemes setting or recommending vesting criteria which are 
appropriate in terms of the company’s performance and return 
on shareholders’ investment over the same period
the formal terms of reference of the remuneration committee 
are available on the company’s website www888holdingsplc
com
the board intends that executive remuneration policies be 
both formal and transparent it further acknowledges the 
importance of taking into consideration independent advice 
in setting remuneration policies and benefit levels in 2013 
the remuneration committee took into consideration advice 
received in the past from new bridge street however no 
additional advice was received during 2013 new bridge street 
does not provide any other services to the company and was 
appointed in the past by the remuneration committee as an 
objective and independent remuneration adviser no fees were 
paid by the company to new bridge street in 2013
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voting at general meeting
at the company’s last annual general meeting held on 8 may 
2013 8662 of the votes 243336972 votes were cast for 
the resolution to approve the remuneration report 1338 
37 590064 votes of the votes were cast against the resolution 
to approve the remuneration report and 28576 votes were 
withheld
actions taken by the directors in 2013 in response to concerns 
of institutional investor groups included
  the remuneration committee has sought to provide more 
detail in the remuneration report and to make it a more 
straightforward document to read
  the performance conditions under the 888 allemployee 
share plan are considered by the remuneration committee 
to be challenging due to the 3year cliff vesting mechanism 
and the reference to relative tsr compared to a peer group 
median the performance targets set by the remuneration 
committee for the executive directors are also considered 
to be stretching
  the remuneration committee may negotiate inclusion 
in newly recruited executive directors’ employment 
agreements a clawback or malus mechanism as regards 
shortterm or longterm incentives andor a mitigation 
mechanism regarding shortterm and longterm incentive 
payments made during the executive directors’ unexpired 
notice period where such executive director is engaged in 
other employment during such period
  the remuneration committee has sought to introduce 
guidelines that will reference overall compensation levels 
to compensation packages in ftse 250 companies 
in order to avoid concerns that compensation may be 
considered or appear excessive
approval 
this report was approved by the board and signed on its 
behalf by
amos pickel
chairman of the remuneration committee
25 march 2014
directors’ remuneration report
888 holdings plc  annual report  accounts 2013 888 holdings plc  annual report  accounts 2013
48 2312404   25 march 2014 624 am   proof 11
independent auditors’ report to the 
members of 888 holdings plc
opinion on financial statements
in our opinion 
  the financial statements give a true and fair view of the state of the group’s and the company’s affairs as at 31 december 
2013 and of the group’s profit for the year then ended
  the group and company’s financial statements have been properly prepared in accordance with international financial 
reporting standards “ifrss” as adopted by the european union and
  the financial statements have been properly prepared in accordance with the gibraltar companies consolidated accounts 
act 1999 the gibraltar companies accounts act 1999 and the gibraltar companies act 1930 as amended 
we have audited the financial statements the ‘financial statements’ of 888 holdings plc for the year ended 31 december 2013 
which comprise the consolidated income statement the consolidated statement of comprehensive income the consolidated 
and company balance sheets the consolidated and company statements of changes in equity the consolidated and company 
statements of cash flows and the related notes the financial reporting framework that has been applied in their preparation is 
applicable law and ifrss as adopted by the european union
our assessment of risks of material misstatement
in preparing the financial statements the directors made a number of subjective judgements and significant accounting 
estimates that involved making assumptions and considering future events that are by their nature inherently uncertain see 
note 2 to the consolidated financial statements we primarily focused our work in these areas by assessing the directors’ 
judgements against available evidence forming our own judgements and evaluating the disclosures in the financial statements
in arriving at our audit opinion above on the group financial statements the risks of material misstatement that had the 
greatest effect on our group audit in the current year are noted below this is not a complete list of all risks or areas of audit 
focus identified by our audit we discussed these areas of focus with the audit committee their report on those matters that 
they considered to be significant issues in relation to the financial statements is set out on pages 31 to 33 we focused on the 
following areas
  revenue recognition which is a presumed fraud risk under international standards on auditing uk  ireland the main risks 
are the completeness existence and presentation in the statement of comprehensive income of net gaming revenue and 
other revenue details of the accounting policies applied in respect of the various income streams earned by the group are 
given in note 2 to the financial statements the group also makes certain judgements around the estimates and treatment of 
various customer incentives and bonuses that are either deducted from revenue or treated as a cost the timing of revenue 
recognition and the accounting treatment of revenue streams derived from contractual arrangements entered into with third 
parties 
we documented and tested the key it and manual general and application controls over the completeness and accuracy 
of the group’s main gaming systems this included testing the reconciliation between the main gaming systems and the 
nominal ledger we also undertook analytical and other substantive testing including it interrogation work over net gaming 
revenue other revenue and the treatment of customer bonuses 
we reviewed the assumptions estimates and judgements applied by management related to certain customer bonuses and 
challenged these based on available information 
we reviewed key contracts related to revenue share agreements and other relevant documentation to assess whether 
the revenue recognised had been correctly treated as gross or net in line with the group’s stated accounting policies and 
whether any other terms within the contract had any material accounting or disclosure impacts we also assessed whether 
the revenue recognition policies adopted by the group complies with ifrss as adopted by the eu and industry standards
where revenue was recorded through journal entries we performed testing to establish whether a service had been provided 
in the financial year to support this recognition
  the assessment of the additions to and carrying value of goodwill and other intangible assets to determine whether there 
was a risk of material misstatement in the carrying value of these assets and whether an impairment should be recognised 
intangible assets primarily comprise those intangible assets recognised on acquisitions licenses acquired and internally 
generated computer software enhancements including those designed to meet us licensing criteria the group holds 
material amounts related to the above assets with carrying values supported through compiling discounted cash flow 
models with assumptions estimates and judgements adopted or applied by management key assumptions include discount 
rates perpetuity rates expected operating margins and growth rates the future period over which projections should apply 
and sensitivity analysis
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we documented and tested the key controls in respect of the capitalisation of intangible assets tested a sample of projects 
undertaken in the year against invoices from external suppliers and internal payroll costs and assumptions and evaluated 
the assessment by management as to whether the project spend met all the recognition criteria set out in ias38 we also 
considered whether there were any indications of impairment of intangible assets we utilised our internal valuations team 
as part of the audit team and together we challenged management’s assumptions used in the discounted cash flow models 
prepared to assess the impairment of goodwill and other intangibles as described in note 11 of the group’s annual report 
this included reviewing all the key assumptions against external evidence where available and by reviewing the cash flow 
projections against board approved budgets and assessing the reasonableness of cash flow projections beyond that period 
against available evidence to support these including external information and studies we also assessed the past ability of 
management to forecast with material accuracy we also performed other sensitivity analyses on these models particularly 
where changes in key assumptions could have an impact on the headroom against a breakeven position we also reviewed 
the disclosures in the financial statements to conclude that these reasonably highlighted all key assumptions and judgements 
made
  legal and regulatory compliance and provisions given the developing nature of the gaming sector in many countries across 
the world there is a risk that potential material legal or regulatory matters are not appropriately disclosed or provided for 
we discussed with the group’s legal advisors as to whether there were any known instances of material breaches in 
regulatory and licence compliance that needed to be disclosed or required provisions to be made in the financial statements 
the group have compliance obligations that range from administration of their licences to assessing the impact of country
specific and panregional rules and regulations on its business we reviewed how the group monitors legal and regulatory 
developments and their assessment of the potential impact on the business and the appropriate internal and external 
advice taken in respect of these developments the group assesses the appropriateness and quantum of any provisions and 
disclosures required under ifrss as adopted by the eu for certain outstanding legal and regulatory disputes which are an 
estimate of what the directors believe to be the fair value based on the directors best estimate where there is a probable 
outflow of economic benefits where the group do not consider the likelihood of a provision being probable the group will 
disclose the existence of a contingent liability unless it is remote we corroborate this by reviewing any correspondence 
from regulators related to the group’s licence compliance requirements we met with and reviewed the litigation report 
provided by the group’s legal counsel and discussed each of the material cases noted in the report to determine the group’s 
assessment of the likelihood and magnitude of any liability that may arise we also reviewed where required any available 
external legal or regulatory advice sought by the group in their assessment we challenged the assessments made where 
needed and reviewed the calculation of any provisions made in the light of the external advice provided to the group we 
also reviewed all disclosures prepared by the group for these provisions and contingent liabilities
  tax including deferred tax given that due to the international nature of the group there was a risk that material tax 
exposures may not be reasonably disclosed or provided for in the financial statements 
we discussed with the group how they manage control and operate group companies in the countries in which they are 
registered we also reviewed how the group considers taxation as part of the overall business planning and how they 
regularly monitor the rules and practices governing the taxation of ecommerce activity that is evolving in many countries 
the group seeks external advice on these matters in formulating the estimated amount of tax to be provided in certain 
jurisdictions we reviewed the taxation provisions in respect of each jurisdiction in which the group is registered or has a 
significant presence we assessed the latest external advice received by management with regard to exposure to taxation 
in the major territories in which the group operates and any correspondence from tax authorities in those territories that 
may require additional disclosures or provisions we also considered any transfer pricing studies carried out on behalf of 
the group in the period and assessed in respect of earlier studies whether there had been any change in the basis of 
operations in the relevant territories we challenged the assessments made by management where needed and reviewed 
the disclosures prepared by the group for the tax provisions and contingent liabilities
  the reopening of the us market in certain states certain us states have legalised various forms of online gaming and 
the group has reentered the market during the year as a consequence the group has entered into a number of new 
agreements and joint venture arrangements during the year and management has assessed the accounting treatments that 
should be applied to these 
we critically assessed the agreements entered into during the year in respect of the group’s us operations both with 
third parties and joint venture partners and assessed whether the company and consolidation accounting applied was in 
accordance with applicable ifrss as adopted by the eu we also assessed with the group’s compliance and legal advisors 
as to whether the group was operating in accordance with its us licenses
independent auditors’ report to the 
members of 888 holdings plc
888 holdings plc  annual report  accounts 2013
50 2312404   25 march 2014 624 am   proof 11
our application of materiality
we apply the concept of materiality both in planning and performing our audit and in evaluating the effect of misstatements on 
our audit and on the financial statements for planning we consider materiality to be the magnitude by which misstatements 
including omissions could influence the economic decisions of reasonable users that are taken on the basis of the financial 
statements in order to reduce to an appropriately low level the probability that any misstatements exceed materiality we use 
a lower materiality level performance materiality to determine the extent of testing needed importantly misstatements below 
these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements 
and the particular circumstances of their occurrence when evaluating their effect on the financial statements as a whole 
we determined materiality for the financial statements as a whole to be us40 million in determining this we based our 
assessment on a level of 1 of revenue for the year on the basis of our risk assessment together with our assessment of the 
group’s control environment our judgment is that performance materiality for the financial statements should be 75 of planning 
materiality we agreed with the audit committee that we would report to the committee all audit differences individually in excess 
of us01 million we also agreed to report differences below these thresholds that in our view warranted reporting on qualitative 
grounds 
an overview of the scope of our group audit
the majority of the groups individual entities do not require individual statutory audits and as an online gaming group the 
accounting for the group is centrally managed for the purposes of the group audit we consider that there are two reporting 
components comprising one company based in israel and the other being the rest of the worldwide group the audit of the 
israeli company is carried out by a component audit firm using a materiality of us09 million as instructed by bdo and the 
bdo group audit team audit the rest of the worldwide group which includes all the group’s consolidated revenue and the 
majority of the groups costs using materiality of us40 million as part of our work on the group and in accordance with 
isa600 “special considerations  audit of group financial statements  including the work of component auditors we requested 
that the israeli component auditor performed their audit under group instructions and reporting and we met with and reviewed 
their work as part of the overall audit based on the above scope we were able to conclude whether sufficient appropriate audit 
evidence had been obtained as a basis of our opinion on the group financial statements as a whole 
opinion on other matters prescribed by legal and regulatory requirements 
in our opinion
  the information given in the strategic report and the directors’ report for the year ended 31 december 2013 for which the 
financial statements are prepared is consistent with the financial statements and
  the part of the remuneration report described as having been audited has been properly prepared in accordance with 
section 421 of the uk companies act 2006 
matters on which we are required to report by exception 
under the isas uk and ireland we are required to report to you if in our opinion information in the annual report is 
  materially inconsistent with the information in the audited financial statements or
  apparently materially incorrect based on or materially inconsistent with our knowledge of the company acquired in the 
course of performing our audit or
  is otherwise misleading 
in particular we are required to consider whether we have identified any inconsistencies between our knowledge acquired 
during the audit and the directors’ statement that they consider the annual report is fair balanced and understandable and 
whether the annual report appropriately discloses those matters that we communicated to the audit committee which we 
consider should have been disclosed
under gibraltar legal and regulatory requirements we are required to report to you if in our opinion 
  the company has not kept proper accounting records
  if we have not received all the information and explanations we require for our audit or
  if information specified by law regarding directors’ remuneration and other transactions is not disclosed 
under the listing rules we are required to review 
  the directors’ statement on page 30 in relation to going concern and
  the part of the corporate governance statement on pages 27 to 30 relating to the company’s compliance with the nine 
provisions of the uk corporate governance code specified for our review
we have nothing to report in respect of these matters 
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respective responsibilities of directors and auditors 
as explained more fully in the statement of directors’ responsibilities on page 26 the directors’ are responsible for the 
preparation of the financial statements and for being satisfied that they give a true and fair view our responsibility is to audit 
and express an opinion on the financial statements in accordance with applicable law and international standards on auditing 
uk and ireland those standards require us to comply with the financial reporting council’s frc’s ethical standards for 
auditors
888 holdings plc has complied with the requirements of rules 986 and 988 of the listing rules of the uk financial conduct 
authority and in accordance with section 421 of the uk companies act 2006 in preparing its annual report as if it was 
incorporated in the united kingdom as auditors we have agreed that our responsibilities in relation to the annual report will 
be those as set out below
we report to you our opinion as to whether the financial statements give a true and fair view and whether the financial 
statements have been properly prepared in accordance with the gibraltar companies consolidated accounts act 1999 
the gibraltar companies accounts act 1999 and the gibraltar companies act 1930 as amended and the part of the 
remuneration report to be audited has been properly prepared in accordance with section 421 of the uk companies act 2006 
we also report to you whether in our opinion the information disclosed in the directors’ report is consistent with the financial 
statements if the company has not kept proper accounting records if we have not received all the information and explanations 
we require for our audit or if information specified by the listing rules and gibraltar legislation regarding directors’ 
remuneration and other transactions is not disclosed
scope of the audit of the financial statements performed in accordance with isas uk and ireland
an audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material misstatement whether caused by fraud or error this includes 
an assessment of whether the accounting policies are appropriate to the group’s circumstances and have been consistently 
applied and adequately disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information in the annual report 
to identify material inconsistencies within the audited financial statements and to identify any information that is apparently 
materially incorrect based on or materially inconsistent with the knowledge acquired by us in the course of performing the 
audit if we become aware of any apparent material misstatements or inconsistencies we consider the implications for our 
report
the purpose of this report and restrictions on its use by persons other than the members of the company as a body
our report is made solely to the company’s members as a body in accordance with our engagement letters our audit work has 
been undertaken so that we might state to the company’s members those matters that we are required to state to them in an 
auditor’s report and for no other purpose to the fullest extent permitted by law we do not accept or assume responsibility to 
anyone other than the company and the company’s members as a body for our audit work for this report or for the opinions 
we have formed
bdo llp  
chartered accountants 
55 baker street 
london w1u 7eu  
united kingdom 
25 march 2014
christian summerfield statutory auditor  
for and on behalf of  
bdo limited  
registered auditors 
regal house 
po box 1200 
gibraltar 
25 march 2014 
bdo llp is a limited liability partnership registered in england and wales with registered number oc305127 
bdo limited a gibraltar limited company is registered in gibraltar with company number 52200
independent auditors’ report to the 
members of 888 holdings plc
888 holdings plc  annual report  accounts 2013
52 2312404   25 march 2014 624 am   proof 11
consolidated income statement
for the year ended 31 december 2013
the notes on pages 57 to 88 form part of these financial statements
note
year ended 31 december
2013
us million
2012
us million
revenue 3 4005 3758
operating expenses 1280 1283
gaming duties 137 226
research and development expenses 307 272
selling and marketing expenses 1399 1312
administrative expenses 320 296
operating profit before impairment charges retroactive duties and associated 
charges and share benefit charges 617 519
impairment charges — 22
retroactive duties and associated charges — 111
share benefit charges 55 17
operating profit 4 562 369
finance income 6 72 46
finance expenses 6 75 27
movement in contingent and deferred consideration 21 05 20
profit on acquisition of equity accounted joint venture 13 19 —
share of posttax loss of equity accounted joint ventures 13 41 —
profit before tax 532 408
taxation 7 32 54
profit after tax for the year attributable to equity holders of the parent 500 354
note
year ended 31 december
2013
us 
2012
us
earnings per share 8
basic 142¢ 102¢
diluted 140¢ 101¢
consolidated statement of comprehensive income 
for the year ended 31 december 2013
note
year ended 31 december
2013
us million
2012
us million
profit for the year 500 354
items that may be reclassified subsequently to profit or loss
group share of equity injections by joint venture partner in equity accounted joint 
venture 13 61 —
items that will not be reclassified to profit or loss
actuarial losses on defined benefit pension plan 5 05 07
total other comprehensive income for the year 56 07
total comprehensive income for the year attributable to equity holders of the parent 556 347
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consolidated balance sheet 
at 31 december 2013
note
31 december
2013
us million
2012
us million
assets
noncurrent assets
intangible assets 11 1557 1477
property plant and equipment 12 191 183
investment in equity accounted joint venture 13 39 —
available for sale investment 14 02 02
deferred taxes 15 12 04
1801 1666
current assets
cash and cash equivalents 16 1158 815
short term investments 17 39 35
trade and other receivables 18 314 262
corporate taxes 10 35
fair value of derivative financial instruments 27 — 33
1521 1180
total assets 3322 2846
equity and liabilities
equity attributable to equity holders of the parent
share capital 19 32 32
share premium 09 01
retained earnings 1706 1449
total equity attributable to equity holders of the parent 1747 1482
liabilities
current liabilities
trade and other payables 20 925 831
fair value of derivative financial instruments 27 42 —
corporate taxes 19 23
customer deposits 22 554 495
contingent and deferred consideration 21 04 07
1544 1356
noncurrent liabilities
share benefit charges  cash settled 24 31 08
total liabilities 1575 1364
total equity and liabilities 3322 2846
the financial statements on pages 53 to 88 were approved and authorised for issue by the board of directors on 25 march 2014 
and were signed on its behalf by
brian mattingley
chief executive officer
aviad kobrine
chief financial officer
the notes on pages 57 to 88 form part of these financial statements
888 holdings plc  annual report  accounts 2013
54 2312404   25 march 2014 624 am   proof 11
consolidated statement of changes in equity 
for the year ended 31 december 2013
share
capital
us million
share
premium
us million
retained
earnings
us million
total
us million
balance at 1 january 2012 32 01 1180 1213
dividend paid 87 87
equity settled share benefit charges — — 09 09
issue of shares see note 19 — — — —
profit after tax for the year attributable to equity holders of the parent — — 354 354
other comprehensive income for the year — — 07 07
balance at 1 january 2013 32 01 1449 1482
dividend paid — — 332 332
equity settled share benefit charges — — 33 33
issue of shares see note 19 — 08 — 08
profit after tax for the year attributable to equity holders of the parent — — 500 500
other comprehensive income for the year — — 56 56
balance at 31 december 2013 32 09 1706 1747
the following describes the nature and purpose of each reserve within equity 
share capital — represents the nominal value of shares allotted calledup and fully paid 
share premium — represents the amount subscribed for share capital in excess of nominal value 
retained earnings — represents the cumulative net gains and losses recognised in the consolidated statement of  
comprehensive income 
the notes on pages 57 to 88 form part of these financial statements
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consolidated statement of cash flows
for the year ended 31 december 2013
year ended 31 december
2013
us million
2012
us million
cash flows from operating activities
profit before income tax 532 408
adjustments for 
impairment charges — 22
depreciation 83 92
amortisation 56 56
interest received 03 03
interest expense — 11
foreign exchange differences on deferred consideration — 05
fair value movements on unrealized foreign exchange derivatives 75 33
share of post tax loss of equity accounted joint venture 41 —
profit on acquisition of equity accounted joint venture 19 —
movement in contingent and deferred consideration 05 20
share benefit charges 55 17
825 555
increase in trade receivables 07 29
increase in other accounts receivables 20 04
increase in customer deposits 59 46
increase in trade and other payables 88 189
cash generated from operations 945 757
income tax paid 43 50
net cash generated from operating activities 902 707
cash flows from investing activities
consideration paid on acquisitions see note 21 08 367
purchase of property plant and equipment 91 106
decrease increase in short term investments 04 25
interest received 03 03
acquisition of intangible assets 08 03
internally generated intangible assets 127 105
net cash used in investing activities 235 553
cash flows from financing activities
interest paid — 11
issue of shares 08 —
dividends paid 332 87
net cash used in financing activities 324 98
net increase in cash and cash equivalents 343 56
cash and cash equivalents at the beginning of the year 815 759
cash and cash equivalents at the end of the year 1158 815
the notes on pages 57 to 88 form part of these financial statements
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56 2312404   25 march 2014 624 am   proof 11
notes to the consolidated financial statements
1 general information
company description and activities 
888 holdings public limited company the ‘company’ and its subsidiaries together the ‘group’ was founded in 1997  
and originally operated as a holding company domiciled in the british virgin islands on 12 january 2000 the company 
was continued in antigua and barbuda as a corporation under the international business corporation act 1982 with 
registered number 12512 on 17 december 2003 the company redomiciled to gibraltar with the company number 90099 
on 4 october 2005 the company listed on the london stock exchange 
the group is the owner of innovative proprietary software solutions providing a range of virtual online gaming services 
over the internet including casino and games poker bingo and emerging offering which mainly comprises 888’s 
sportsbook brand licencing revenue on third party platforms and mytopia social games to end users and also provides 
these services through its business to business unit dragonfish to business partners in addition the group provides 
payment services customer support and online advertising
definitions 
in these financial statements 
the company 888 holdings public limited company
the group 888 holdings public limited company and its subsidiaries
subsidiaries companies over which the company has control as defined in international accounting standard 27 
‘consolidated and separate financial statements’ and whose accounts are consolidated with those 
of the company
related parties as defined in international accounting standard 24 – ‘related party disclosures’
jointly controlled 
entities
as defined in international accounting standards 31 – ‘interests in joint ventures’
2 significant accounting policies
the significant accounting policies applied in the preparation of the financial statements are as follows 
basis of preparation 
the consolidated financial statements of the group have been prepared in accordance with international financial 
reporting standards including international accounting standards ‘ias’ and interpretations adopted by the 
international accounting standards board ‘iasb’ and endorsed for use by companies listed on an eu regulated market 
the significant accounting policies applied in the financial statements of the group in the prior years are applied 
consistently in these financial statements without any material change 
the financial statements are presented in us dollars us million because that is the currency the group primarily 
operates in 
the consolidated financial statements comply with the gibraltar companies accounts act 1999 the gibraltar companies 
consolidated accounts act 1999 and the gibraltar companies act 
the following standards and interpretations issued by the iasb or the international financial reporting interpretations 
committee ifric have been adopted by the group during the year with no significant impact on its consolidated results 
or financial position
  amendments to ias 1 — presentation of items of other comprehensive income effective for accounting periods 
beginning on or after 1 july 2012
  ifrs 13 — fair value measurement 
  amendments to ias 19 — employee benefits accounting for defined benefit pension schemes
  amendments to ifrs 7 — disclosures offsetting financial assets and financial liabilities effective for accounting 
periods beginning on or after 1 january 2013 
  improvements to ifrss 2009–2011 cycle – this annual improvement project clarifies the requirements of ifrss 
and eliminates inconsistencies within and between standards the relevant changes included amendments to ias 1 
‘presentation of financial statements’ ias 16 ‘property plant and equipment’ ias 32 financial instruments and ias 12 
‘income taxes’
stock code 888
www888holdingsplccom financials
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2 significant accounting policies continued
the following standards and interpretations issued by the iasb or ifric have not been adopted by the group as they were 
not effective for the year 2013 the group is currently assessing the impact these standards and interpretations will have 
on the presentation of and recognition in its consolidated results in future periods
  ifrs 10 — consolidated financial statements effective for accounting periods beginning on or after 1 january 2014 
  ifrs 11 — joint arrangements effective for accounting periods beginning on or after 1 january 2014
  ifrs 12 — disclosure of interests in other entities effective for accounting periods beginning on or after 1 january 2014 
  ias 27 — separate financial statements effective for accounting periods beginning on or after 1 january 2014 
  ias 28 — investments in associates and joint ventures effective for accounting periods beginning on or after  
1 january 2014 
  amendments to ifrs 10 ifrs 11 and ifrs 12 – consolidated financial statements joint arrangements and disclosure 
of interests in other entities effective for accounting periods beginning on or after 1 january 2014 
  amendments to ias 32 — offsetting financial assets and financial liabilities effective for accounting periods 
beginning on or after 1 january 2014
  amendments to ias 36 — recoverable amounts disclosures for nonfinancial assets effective for accounting periods 
beginning on or after 1 january 2014
  amendments to ias 39 — novation of derivatives and continuation of hedge accounting effective for accounting 
periods beginning on or after 1 january 2014
  ifrs 9 — financial instruments the effective date is to be determined this amendment has not yet been endorsed 
for use in the eu
  ifric 21 levies — interpretation of ias 37 accounting for levies imposed by governments effective for accounting 
periods beginning on or after 1 january 2014 this amendment has not yet been endorsed for use in the eu
  amendments to ias 19 — defined benefit plans employee contributions effective for accounting periods beginning 
on or after 1 july 2014 this amendment has not yet been endorsed for use in the eu
  improvements to ifrss 20102012 cycle and 20112013 cycle — this annual improvement project clarifies the 
requirements of ifrss and eliminates inconsistencies within and between standards the relevant changes included 
amendments to ifrs 1 ‘firsttime adoption of international financial reporting standards’ ifrs 2 ‘sharebased 
payment’ ifrs 3 ‘business combinations’ ifrs 8 ‘operating segments’ ifrs 13 ‘fair value measurement’ ias 16 
‘property plant and equipment’ ias 24 ‘related party disclosures’ ias 38 ‘intangible assets’ and ias 40 ‘investment 
property’ effective for accounting periods beginning on or after 1 july 2014 this amendment has not yet been 
endorsed for use in the eu
the preparation of consolidated financial statements under ifrs requires the group to make estimates and judgments that 
affect the application of policies and reported amounts estimates and judgments are continually evaluated and are based 
on historical experience and other factors including expectations of future events that are believed to be reasonable under 
the circumstances actual results may differ from these estimates 
included in this note are accounting policies which cover areas that the directors consider require estimates and 
assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities 
within the next financial year these policies together with references to the related notes to the financial statements can 
be found below 
note
taxation 7
intangible assets 11
impairment of goodwill and intangible assets 11
investment in equity accounted joint ventures 13
sharebased payments 24
contingent liabilities and regulatory compliance 29
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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2 significant accounting policies continued
basis of consolidation
the consolidated financial statements include the accounts of the company and its subsidiaries the subsidiaries are 
companies controlled by 888 holdings public limited company control exists where the company has the power 
to govern the financial and operating policies of an entity so as to obtain benefits from its activities subsidiaries are 
consolidated from the date the parent gained control until such time as control ceases 
the financial statements of the subsidiaries are included in the consolidated financial statements using the purchase 
method of accounting on the date of the acquisition the assets and liabilities of a subsidiary are measured at their fair 
values and any excess of the fair value of the consideration over the fair values of the identifiable net assets acquired is 
recognised as goodwill 
intercompany transactions and balances are eliminated on consolidation 
the financial statements of subsidiaries are prepared for the same reporting period as the parent company and using 
consistent accounting policies 
revenue 
revenue is recognised provided that it is probable that economic benefits will flow to the group and the revenue can be 
reliably measured revenue is recognised in the accounting periods in which the transactions occurred after deduction of 
certain bonuses granted to customers and after adding the management fees and charges applied to customer accounts 
and is measured at the fair value of the consideration received or receivable 
revenue consists of income from online activities and that generated from processing customers’ cross currency deposits 
and withdrawals which is allocated to each reporting segment revenue from online activities comprises
casino and bingo
casino and bingo online gaming revenue is represented by the difference between the amounts of bets placed by 
customers less amounts won
where the group is using a thirdparty platform and is not deemed to be the principal the recognised income is the net 
revenue share earned from that activity 
poker 
poker online gaming revenue represents the commission charged from each poker hand in ring games and entry fees 
for participation in poker tournaments in poker tournaments entry fee revenue is recognised when the tournament has 
concluded 
emerging offerings 
revenue from emerging offerings is mainly comprised of sportbook social games and brand licensing on third party 
platforms
  sportsbook online gaming revenue comprises net house win adjusted for the fair value of open betting positions
  social games revenue comprises the group’s share from the sale of virtual goods to customers playing the group’s 
games 
  revenue derived from brand licensing on third party platforms represents the group’s net revenue share from that 
activity
b2b 
  where the group is considered to be the principal income is recognised as the gross revenue generated from use of 
the group’s platform in online gaming activities with the partners’ share of the revenue charged to operating expenses 
  in other cases income is recognised as the group share of the net revenue generated from use of the group’s platform
  b2b also includes fees from the provision of certain gaming related services to partners
  customer advances received are treated as deferred income within current liabilities and released as they are earned
operating expenses
operating expenses consists primarily of staff costs payment service providers’ commissions chargebacks commission 
and royalties payable to third parties all of which are recognised on an accruals basis and depreciation and amortisation
stock code 888
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2 significant accounting policies continued
administrative expenses
administrative expenses consist primarily of staff costs corporate professional expenses all of which are recognised on an 
accruals basis and impairment charges
foreign currency 
monetary assets and liabilities denominated in nonus dollar currencies are translated into us dollar equivalents using 
yearend spot foreign exchange rates nonmonetary assets and liabilities are translated using exchange rates prevailing at 
the dates of the transactions exchange rate differences on foreign currency transactions are included in financial income 
or financial expenses as appropriate 
the results and financial position of all group entities that have a functional currency different from us dollars are 
translated into the presentation currency as follows 
a assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance 
sheet and
b income and expenses for each income statement are translated at an average exchange rate unless this average is 
not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates in which case 
income and expenses are translated at the dates of the transactions
taxation 
the tax expense represents tax payable for the year based on currently applicable tax rates 
deferred tax assets and liabilities are recognised where the carrying amount of an asset or liability in the balance sheet 
differs from its tax base it is accounted for using the balance sheet liability method recognition of deferred tax assets is 
restricted to those instances where it is probable that taxable profit will be available against which the difference can be 
utilised such assets and liabilities are not recognised if the temporary differences arise from goodwill or from the initial 
recognition other than in a business combination of other assets and liabilities in a transaction that affects neither the 
taxable profit nor the accounting profit the amount of the asset or liability is determined using tax rates that have been 
enacted or substantively enacted by the balance sheet date and are expected to apply when the deferred tax liabilities
assets are settledrecovered
segment information 
segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker 
the chief operating decision maker has been identified as the management team comprising mainly the chief executive 
officer and the chief financial officer these segments are 
  b2c business to customer casino and games poker bingo and emerging offering and
  b2b business to business which offers total gaming services under the dragonfish trading brand dragonfish offers 
to its business partners use of technology software operations epayments and advanced marketing services through 
the provision of offlineonline marketing management of affiliates seo crm and business analytics 
intangible assets 
acquisitions 
identifiable assets liabilities and contingent liabilities that meet the conditions for recognition under ifrs 3 are recognised 
at their fair value at the acquisition date the identified intangibles are amortised over the useful economic life of the 
assets this has ranged between three months to four years for acquisitions to date the exception is acquisitions of trade 
names which have an indefinite useful economic life and therefore an annual impairment test is conducted 
internally generated intangible assets 
expenditure incurred on development activities is capitalised only when the expenditure will lead to new or substantially 
improved products or processes the products or processes are technically and commercially feasible and the group has 
sufficient resources to complete development all other development expenditure is expensed subsequent expenditure on 
intangible assets is capitalised only where it clearly increases the economic benefits to be derived from the asset to which 
it relates the group estimates the useful life of these assets as between three and five years except for certain licence 
costs which are amortised over either the life of the licence or up to 20 years whichever is the shorter period
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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2 significant accounting policies continued
goodwill 
goodwill represents the excess of the cost of a business combination over the company’s interest in the fair value of the 
identifiable assets liabilities and contingent liabilities acquired cost comprises the fair value of any assets transferred 
liabilities assumed and equity instruments issued
goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated 
income statement where the fair value of identifiable assets liabilities and contingent liabilities exceed the fair value of 
consideration paid the excess is credited in full to the consolidated income statement on the acquisition changes in the 
fair value of the contingent consideration are charged or credited to the income statement in addition the direct costs of 
acquisition are charged immediately as an expense
property plant and equipment 
property plant and equipment is stated at historic cost less accumulated depreciation assets are assessed at each 
balance sheet date for indications of impairment 
depreciation is calculated using the straightline method at annual rates estimated to write off the cost of the assets less 
their estimated residual values over their expected useful lives the annual depreciation rates are as follows 
it equipment 33
office furniture and equipment 7–15
motor vehicles 15
leasehold improvements over the shorter of the term of the lease or useful lives
impairment of nonfinancial assets 
impairment tests on goodwill are undertaken annually on 31 december and where applicable an impairment loss is 
recognised immediately in the income statement other nonfinancial assets are subject to impairment tests whenever 
events or changes in circumstances indicate that their carrying amount may not be recoverable where the carrying value 
of an asset exceeds its recoverable amount ie the higher of value in use and fair value less costs to sell the asset is 
written down accordingly 
where it is not possible to estimate the recoverable amount of an individual asset the impairment test is carried out on 
the asset’s cash generating unit ie the lowest group of assets in which the asset belongs for which there are separately 
identifiable cash flows 
investment in equity accounted joint ventures
jointly controlled entities jce are those entities over whose activities the group has joint control established by 
contractual agreement and requiring unanimous consent for strategic financial and operating decisions 
jces are accounted for using the equity method equity accounted investees and are recognised initially at cost the 
group’s share of postacquisition profits and losses is recognised in the consolidated income statement except that losses 
in excess of the group’s investment in the jces are not recognised unless there is an obligation to make good those losses 
profits and losses arising on transactions between the group and its jces are recognised only to the extent of unrelated 
investors’ interests in the jce the investor’s share in the jces profits and losses resulting from these transactions is 
eliminated against the carrying value of the jces any premium paid for a jce above the fair value of the group’s share 
of the identifiable assets liabilities and contingent liabilities acquired is capitalised and included in the carrying amount 
of the jce where there is objective evidence that the investment in a jce has been impaired the carrying amount of the 
investment is tested for impairment in the same way as other nonfinancial assets and any charge or reversal of previous 
impairments is taken to the consolidated income statement
where amounts paid for a jce are exceeded by the group’s share of the fair value of net assets acquired the excess is 
recognised as negative goodwill and released to the consolidated income statement immediately
the group’s share of additional equity contributions from other joint venture partners is taken to other comprehensive 
income
trade receivables 
trade receivables are recognised at fair value and carried at amortised cost and principally comprise amounts due from 
credit card companies and from epayment companies an estimate for doubtful debts is made when collection of the full 
amount is no longer probable bad debts are written off when there is objective evidence that the full amount may not be 
collected 
stock code 888
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2 significant accounting policies continued
derivative financial instruments
the group enters into contracts for derivative financial instruments such as forward currency contracts to hedge 
operational risks associated with foreign exchange rates such derivative financial instruments are measured at fair value 
under ias 39 and comprise level 2 fair value measurement instruments and are carried in the balance sheets as assets 
when the fair value is positive and as liabilities when the fair value is negative any gains or losses arising from changes in 
the fair values of derivatives are recorded immediately in the consolidated income statement
a fair value measurement hierarchy is based on the inputs to valuation techniques used to measure fair value to increase 
consistency and comparability the inputs are categorised into three levels with the highest priority given to unadjusted 
quoted prices in active markets for identical assets or liabilities and the lowest priority given to unobservable inputs level 
2 inputs are inputs other than quoted prices included within level 1 that are either directly or indirectly observable for the 
asset or liability 
short term investments
short term investments are nonderivative financial assets with fixed or determinable payments that are not quoted on 
an active market they are initially recognised at fair value plus transaction costs directly attributable to their acquisition 
they are subsequently carried at amortised cost using the effective interest rate method less any provisions for 
impairment
cash and cash equivalents 
cash comprises cash in hand and balances with banks cash equivalents are shortterm highly liquid investments that are 
readily convertible to known amounts of cash they include shortterm deposits originally purchased with maturities of 
three months or less 
equity 
equity issued by the company is recorded as the proceeds received net of direct issue costs 
trade and other payables 
trade and other payables are recognised at fair value and carried at amortised cost 
liabilities to customers 
liabilities to customers comprise the amounts that are credited to customers’ bankroll the group’s electronic ‘wallet’ 
including provision for bonuses granted by the group less management fees and charges applied to customer accounts 
along with full progressive provision for jackpots these amounts are repayable in accordance with the applicable terms 
and conditions
availableforsale financial assets 
availableforsale financial assets comprise nonderivative financial assets not included in any of the above financial asset 
categories and comprise principally the group’s investments in entities not qualifying as joint ventures or subsidiaries 
they are carried at fair value with changes in fair value recognised directly in a separate component of equity where there 
is a significant decline in the fair value of an availableforsale financial asset the full amount of the impairment including 
any amount previously charged to equity is recognised in the income statement on disposal of an availableforsale asset 
any balance within equity is transferred to the income statement 
leases 
leases are classified as finance leases wherever the terms of the lease transfer substantially all the risks and rewards of 
ownership to the group all other leases are classified as operating leases and rentals payable are charged to income on a 
straightline basis over the term of the lease 
provisions 
provisions are recognised when the group has a present or constructive obligation as a result of a past event from which it 
is probable that it will result in an outflow of economic benefits that can be reasonably estimated 
dividends 
dividends are recognised when they become legally payable in the case of interim dividends this is when paid in the case 
of final dividends this is when approved by the shareholders at the annual general meeting 
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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2 significant accounting policies continued
sharebased payments
  equity settled
where the company grants its employees or contractors shares or options the fair value at the date of grant is charged to 
the income statement over the vesting period nonmarket performance conditions are taken into account by adjusting the 
number of instruments expected to vest at each balance sheet date so that ultimately the cumulative amount recognised 
over the vesting period is based on the number of instruments that eventually vest market performance conditions are 
taken into account in determining the fair value at the date of grant
  cashsettled
for transactions treated as cash settled share based payment transactions the company recognises the services received 
and a liability to pay for those services as the employees render the service 
until the liability is settled the company remeasures the fair value of the liability at each reporting date and at the date of 
settlement with any changes in fair value charged or credited to the income statement for the period 
severance pay schemes
severance scheme surpluses and deficits are measured at
  the fair value of plan assets at the reporting date less
  plan liabilities calculated using the projected unit credit method discounted to its present value using yields available 
for the appropriate government bonds that have maturity dates appropriate to the terms of the liabilities plus
  unrecognised past service costs
any difference between the expected return on assets and that actually achieved and any changes in liabilities over the 
year due to changes in assumptions or experience within the scheme are recognised in other comprehensive income in 
the period in which they arise
financial guarantee contracts
where the group enters into financial guarantee contracts the group considers these to be insurance contracts and 
accounts for them as such the group treats the guarantee as a contingent liability until such time as it becomes probable 
that the group will be required to make payments under the guarantee 
stock code 888
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3 segment information
business segments
year ended 31 december 2013
b2c b2b consolidated
casino
us million
poker
us million
bingo
us million
emerging
offerings
us million
total b2c
us million us million us million
revenue 1904 936 437 245 3522 483 4005
result
segment result 1714 270 1984
unallocated corporate expenses
1
1422
operating profit 562
financial income 72
financial expenses 75
movement in contingent and 
deferred consideration 05
profit on acquisition of equity 
accounted joint venture 19
share of posttax loss of equity 
accounted joint ventures 41
taxation 32
profit for the year 500
assets
unallocated corporate assets 3322
total assets 3322
liabilities
segment liabilities 521 33 554
unallocated corporate liabilities 1021
total liabilities 1575
1
 including share benefit charges of us55 million charged to administrative expenses
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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3 segment information continued
year ended 31 december 2012
b2c b2b consolidated
casino
us million
poker
us million
bingo
us million
emerging
offerings
us million
total b2c
us million us million us million
revenue 1655 875 518 250 3298 460 3758
result
segment result before 
impairments 1573 267 1840
impairments 06 16 22
segment result 1567 251 1818
unallocated corporate expenses
1
1449
operating profit 369
financial income 46
financial expenses 27
movement in contingent and 
deferred consideration 20
share of posttax profit of equity 
accounted joint ventures —
profit on acquisition of equity 
accounted joint venture —
taxation 54
profit for the year 354
assets
unallocated corporate assets 2846
total assets 2846
liabilities
segment liabilities 465 30 495
unallocated corporate liabilities 869
total liabilities 1364
1
 including share benefit charges of us17 million charged to administrative expenses
other than where amounts are allocated specifically to the b2c and b2b segments above the expenses assets and 
liabilities relate jointly to all segments these amounts are not discretely analysed between the two operating segments as 
any allocation would be arbitrary
stock code 888
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3 segment information continued
geographical information 
the group’s performance can also be reviewed by considering the geographical markets and geographical locations within 
which the group operates this information is outlined below 
revenue by geographical market
year ended 31 december
2013
us million
2012
us million
uk 1633 1618
europe excluding uk 1617 1421
americas 464 382
rest of world 291 337
total revenue 4005 3758
assets by geographical location
year ended 31 december
carrying amount of 
segment assets by location
additions to property 
plant and equipment
2013
us million
2012
us million
2013
us million
2012
us million
europe including uk 2484 2266 38 54
americas 268 95 30 25
rest of world 570 485 23 27
total assets by geographical location 3322 2846 91 106
4 operating profit
 year ended 31 december
2013
us million
2012
us million
operating profit is stated after charging
staff costs 895 801
audit fees to bdo llp 03 03
audit fees to bdo limited  01 01
other fees paid to bdo llp – other assurance related matters 01 01
depreciation within operating expenses 83 92
amortisation within operating expenses 56 56
chargebacks 31 33
payment service providers’ commissions 215 217
retroactive taxes and associated charges — 111
impairment costs within administrative expenses – see notes 11 and 13 — 22
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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5 employee benefits
staff cost including executive directors’ remuneration comprises the following elements
 year ended 31 december
2013
us million
2012
us million
wages and salaries 899 799
social security 38 33
pension costs 60 49
997 881
staff costs capitalised in respect of internally generated intangible assets 102 80
895 801
in the income statement total staff costs excluding share benefit charges of us55 million 2012 us17 million  
are included within the following expenditure categories
 year ended 31 december
2013
us million
2012
us million
operating expenses 518 484
research and development expenses 198 150
administrative expenses 179 167
895 801
average headcount number of employees by category
2013
number
2012
number
operations 736 671
research and development 279 224
administration 115 115
1130 1010
at 31 december 2013 the group employed 1253 2012 1035 staff
severance pay liability – israel 
the group’s employees in israel are eligible to receive certain benefits from the group in specific circumstances as 
such the group operates a defined benefit severance pay plan which requires contributions to be made to separately 
administrated funds 
the method used to determine the current service cost and the present value of the defined benefit obligation according 
to ias 19 ‘employee benefits’ is the projected unit credit actuarial cost method actuarial gains and losses are recognised 
by the group using the equity method 
stock code 888
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5 employee benefits continued
the following table summarises the employee benefits figures as included in the group’s financial statements for 2013 and 
2012 respectively 
2013
us million
2012
us million
severance pay liability within trade and other payables 12 10
income statement charge 33 28
actuarial movements on severance pay liability  
included in statement of comprehensive income 05 07
movement in severance pay liability
severance pay plan assets
 year ended 31 december
2013
us million
2012
us million
at beginning of year 104 84
expected return 04 04
contributions 36 30
benefits paid 17 17
actuarial gain loss on assets 08 01
exchange differences 06 02
at end of year 141 104
severance pay plan liabilities
 year ended 31 december
2013
us million
2012
us million
at beginning of year 114 90
interest cost 04 04
current service costs 33 28
benefits paid 18 18
actuarial loss on obligations 13 08
exchange differences 07 02
at end of year 153 114
severance pay plan trends
 year ended 31 december
2013
us million
2012
us million
2011
us million
2010
us million
2009
us million
plan assets 141 104 84 83 68
plan liabilities 153 114 90 86 70
severance pay liability 12 10 06 03 02
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
68 2312404   25 march 2014 624 am   proof 11
5 employee benefits continued
experience gains and losses on scheme assets and liabilities
 year ended 31 december
2013
us million
2012
us million
2011
us million
2010
us million
2009
us million
on plan assets 06 01 03 02 09
on plan liabilities 11 08 01 05 11
05 07 04 03 02
employees can determine individually into which type of investment their share of the plan assets are invested therefore 
the group is unable to accurately disclose the proportions of the plan assets invested in each class of asset cumulative 
actuarial losses recognised in other comprehensive income amount to us30 million 2012 us25 million the expected 
contribution for 2014 is us43 million
the main actuarial assumptions used in determining the fair value of the group’s employee benefits plan are shown below
2013

2012

discount rate nominal 353 380
estimated increase in employee benefits costs 371 382
voluntary termination rate 70 70
estimated rate of return on assets 380 434
inflation rates based on israeli government bonds 218 228
6 finance income and finance expenses
finance income
 year ended 31 december
2013
us million
2012
us million
interest income 03 04
fair value movements on foreign exchange derivatives — 33
foreign exchange gains 69 —
fair value movements of foreign exchange derivatives on deferred consideration — 09
finance income 72 46
finance expenses
 year ended 31 december
2013
us million
2012
us million
interest expense on deferred consideration — 11
fair value movements on foreign exchange derivatives 75 —
foreign exchange losses — 16
finance expenses 75 27
stock code 888
www888holdingsplccom financials
69 2312404   25 march 2014 624 am   proof 11
7 taxation
corporate taxes
 year ended 31 december
2013
us million
2012
us million
current tax 40 54
deferred tax 08 —
taxation expense 32 54
the taxation expense for the year differs from the standard gibraltar rate of tax the differences are explained below
 year ended 31 december
2013
us million
2012
us million
profit before taxation 532 408
tax at effective tax rate in gibraltar 201310 2012 10 53 41
effect of overseas taxation 14 23
effect of deferred tax originating in overseas jurisdictions 02 01
permanent disallowable expenditure 03 17
nontaxed income 32 37
adjustments to prior years tax charges 08 09
total tax charge for the year 32 54
current tax is calculated with reference to the profit of the company and its subsidiaries in their respective countries of 
operation 
gibraltar — gibraltar companies are subject to a corporate tax rate of 10 
israel — the domestic corporate tax rate in israel from 2013 is 25 2012 25 the company’s israeli subsidiary had 
entered into certain transfer pricing agreements with the israeli income tax commissioner which were effective until 
the end of 2010 the subsidiary has recently concluded an assessment agreement with respect to all tax years up to and 
including 2012 
uk — 888’s subsidiary in the uk pays corporate tax in the uk at the applicable rate of 2325 
for period april 1 2012 — march 31 2013 24 for period april 1 2013 – march 31 2014 23
8 earnings per share
basic earnings per share 
basic earnings per share have been calculated by dividing the profit attributable to ordinary shareholders by the weighted 
average number of shares in issue during the year 
diluted earnings per share 
in accordance with ias 33 ‘earnings per share’ the weighted average number of shares for diluted earnings per share 
takes into account all potentially dilutive equity instruments granted which are not included in the number of shares 
for basic earnings per share certain equity instruments have been excluded from the calculation of diluted eps as 
their conditions of being issued were not deemed to satisfy the performance conditions at the end of the performance 
period or it will not be advantageous for holders to exercise it into shares in the case of options the number of equity 
instruments excluded from the diluted eps calculation is 2259924 2012 6363756
 year ended 31 december
2013 2012
profit for the period attributable to equity holders of the parent us million 500 354 
weighted average number of ordinary shares in issue 350909199 348880677
effect of dilutive ordinary shares and share options 5443710 2665293
weighted average number of dilutive ordinary shares 356352909 351545970
basic 142¢ 102¢
diluted 140¢ 101¢
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
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8 earnings per share continued
adjusted earnings per share
the directors believe that eps excluding share benefit charges retroactive taxes and associated charges movement in 
contingent and deferred consideration impairment charges share of posttax loss of equity accounted joint ventures and 
profit on acquisition of equity accounted joint venture “adjusted eps” better reflects the underlying performance of the 
business and assists in providing a clearer view of the performance of the group 
reconciliation of profit to profit excluding share benefit charges retroactive taxes and associated charges movement in 
contingent and deferred consideration impairment charges share of posttax loss of equity accounted joint ventures and 
profit on acquisition of equity accounted joint venture “adjusted profit” 
 year ended 31 december
2013
us million
2012
us million
profit for the period attributable to equity holders of the parent 500 354
share benefit charges 55 17
retroactive taxes and associated charges — 111
movement in contingent and deferred consideration 05 20
impairment charges — 22
share of posttax loss of equity accounted joint ventures 41 —
profit on acquisition of equity accounted joint venture 19 —
adjusted profit 582 484
weighted average number of ordinary shares in issue 350909199 348880677
weighted average number of dilutive ordinary shares 356352909 351545970
adjusted basic earnings per share 166¢ 139¢
adjusted diluted earnings per share 163¢ 138¢
9 dividend
 year ended 31 december
2013
us million
2012
us million
dividends paid 332 87
an interim dividend of 30¢ per share was paid on 4 october 2013
in 2012 an interim dividend of 25¢ per share was paid on 18 october 2012 and a final dividend of 65¢ per share was paid 
on 13 june 2013
the board of directors will recommend to the shareholders a final divided in respect of the year ended 31 december 2013 
comprising 40¢ per share and an additional oneoff 70¢ which will be recognised in the 2014 financial statements once 
approved
10 acquisitions
acquisitions completed in prior years
internet domain name and brands
during the prior year the group acquired one of its former b2b customers domain name and brands for cash consideration 
of us06 million and contingent consideration based on a percentage of revenue receivable originally estimated at us09 
million all amounts except for goodwill arising of 03m were attributed to intangible assets acquired comprising customer 
information and brands during the year 2012 the contingent consideration payable was increased by us04 million and 
during the year 2013 by us05 million the acquisition is deemed immaterial in respect of ifrs 3 disclosure requirements
wink online bingo business
on 31 december 2009 the group acquired the trade and assets comprising the wink online bingo business of  
daub limited ‘wink bingo business’ for an all cash consideration
during the prior year the group paid an amount of us355 million and completed the settlement of the deferred 
consideration payable in respect of the wink acquisition following negotiations with the vendors the final amount payable 
was reduced and as a result us24 million was released to the consolidated income statement in 2012
stock code 888
www888holdingsplccom financials
71 2312404   25 march 2014 624 am   proof 11
11 intangible assets
goodwill
us million
acquired 
intangible 
assets
us million
internally 
generated 
intangible 
assets
us million
total
us million
cost or valuation
at 1 january 2012 1458 92 202 1752
additions — — 105 105
acquisitions 03 15 — 18
at 31 december 2012 1461 107 307 1875
additions — 09 127 136
at 31 december 2013 1461 116 434 2011
amortisation and impairments
at 1 january 2012 207 70 56 333
impairment — — 09 09
amortisation charge for the year — 17 39 56
at 31 december 2012 207 87 104 398
amortisation charge for the year — 08 48 56
at 31 december 2013 207 95 152 454
carrying amounts
at 31 december 2013 1254 21 282 1557
at 31 december 2012 1254 20 203 1477
at 31 december 2011 1251 22 146 1419
analysis of goodwill by cash generating units
bingo online 
business
us million
other 
us million 
total 
goodwill
us million
carrying value at 1 january 2012 1251 — 1251
acquisition of internet domain name and brands — 03 03
carrying value at 1 january 2013 1251 03 1254
carrying value at 31 december 2013 1251 03 1254
impairment
in accordance with ias 36 and the group’s stated accounting policy an impairment calculation is carried out annually 
on the carrying amounts of goodwill and any other intangible assets that shows indication of impairment a review was 
carried out at 31 december 2013 to assess whether there was any indication that its other intangible assets and property 
plant and equipment had been impaired where an impairment calculation was carried out the carrying value in use of the 
assets was determined by discounting the future cash flows of the relevant cash generating unit to their present value
goodwill
bingo online business 
goodwill and intangible assets associated with the online bingo business unit relates to the acquisition of the online bingo 
business of globalcom limited during 2007 and the acquisition of the wink bingo business in 2009 the income streams 
generated from the bingo business comprising the b2c bingo cash generating unit and the b2b cash generating unit 
have been treated together as the risks and rewards associated with those income streams are deemed to be sufficiently 
similar cash flow projections have been prepared covering the following five year period prior to assuming a long term 
growth rate underlying growth rates as shown in the table below have been applied to revenue and are based on past 
experience the reorganisations that have taken place within the b2c bingo cash generating unit during the year the 
positive results of which have been seen in recent months and projections of future changes in the online gaming market
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
72 2312404   25 march 2014 624 am   proof 11
11 intangible assets continued
having applied conservative estimates certain b2b contracts due to end in the next two years have not been projected 
to be renewed and have been assumed to gradually decline over the period to contract end the discount rate that is 
considered by the directors to be appropriate is the group’s specific weighted average cost of capital which also applies 
to the online bingo cash generating units
key assumptions used 
discount rate 
applied
1
underlying 
growth rate 
year
1
underlying 
growth rate 
years 2–5
underlying 
growth rate 
year 6
operating 
expenses
2
 
increase years 
1–5
operating 
expenses
2
 
increase year 
6
at 31 december 2013 9 2 1 1 3 1
at 31 december 2012 10 2 0 1 6 1
1
  the discount rate is recalculated every year by taking into account prevailing risk free rates equity risk premium and company beta and 
having regard to external data commenting upon the weighted average cost of capital applied to the group 
2
  operating expenses exclude marketing costs which were included in the projections throughout the period on a slowly declining 
percentage of revenues
under the key assumptions above the bingo unit recoverable amount exceeds its carrying amount by us49 million a 1 
increase in the discount rate or a 1 reduction in the underlying growth rate over the forecast period would reduce this 
excess by us17 million and us13 million respectively
internally generated intangible assets
other intangible assets 
no impairment tests were considered to be required at 31 december 2013 and the carrying value of other intangible assets 
is considered to be appropriate 
licenses prior year impairment
during the year 2012 the group requested the french licence to be revoked given the impact of high gaming duty rates 
imposed in france which ultimately rendered the offering of the group’s online gaming services in that jurisdiction not 
economically viable as a consequence no future income arises from these assets and the group made a full impairment 
charge of us08 million in respect of the french licence costs and other intangible assets of us01 million 
stock code 888
www888holdingsplccom financials
73 2312404   25 march 2014 624 am   proof 11
12 property plant and equipment
it equipment
us million
office 
furniture and 
equipment
us million
motor vehicles
us million
leasehold 
improvements
us million
total
us million
cost
at 1 january 2012 406 28 05 133 572
additions 103 01 01 01 106
disposals 04 — — — 04
at 31 december 2012 505 29 06 134 674
additions 82 02 01 06 91
disposals — 01 02 02 05
at 31 december 2013 587 30 05 138 760
accumulated depreciation
at 1 january 2012 305 19 04 73 401
charge for the year 74 02 01 15 92
disposals 02 — — — 02
at 31 december 2012 377 21 05 88 491
charge for the year 69 02 — 12 83
disposals — 01 02 02 05
at 31 december 2013 446 22 03 98 569
carrying amounts
at 31 december 2013 141 08 02 40 191
at 31 december 2012 128 08 01 46 183
at 31 december 2011 101 09 01 60 171
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
74 2312404   25 march 2014 624 am   proof 11
13 investment in equity accounted joint ventures
the following entities meet the definition of jointly controlled entities and have been equity accounted in the 
consolidated financial statements
name
country of 
incorporation
effective interest
31 december 2013
effective interest
31 december 2012
technology solutions gibraltar limited gibraltar 50 50
aapn holdings llc usa 47 —
agn llc usa 47 —
aapn new jersey llc usa 47 —
technology solutions gibraltar limited “tsg”
in 2010 the group obtained a licence to operate online poker games in france
high gaming duty rates imposed in france rendered the offering of the group’s online gaming services in that jurisdiction 
not economically viable accordingly in 2012 the group requested its local licence to be revoked following agreement to 
terminate the joint venture consequently in 2012 the group impaired the full amount of its investment in the joint venture 
in the amount of us13 million
usa jointly controlled entities
on 11 march 2013 the group entered into a joint venture agreement “jva” with avenue olg entertainment llc 
“avenue” and other minority shareholders to form aapn holdings llc “aapn” under that agreement the group has a 
47 interest in aapn aapn is funded by avenue as defined in the jva
aapn new jersey llc “aapn nj” is the entity which contracted with an atlantic city casino licensee in connection with 
the operation of a b2c gaming offering in new jersey an offering which launched in november 2013 agn llc is the 
entity which contracted with a las vegas casino licensee in connection with the operation of a b2c gaming offering in 
nevada this offering has not yet launched
as at december 31 2013 agn llc and aapn nj together the “operating entities” were 100 owned by 888 us inc 
however both are regarded as jointly controlled entities as the group has agreed that so long as the operating entities 
remain wholly owned by the group they will be operated in a manner consistent with the contractual arrangements in 
place within the aapn jva the group also has an irrevocable commitment to contribute 100 of the interests in aapn 
nj and agn llc to aapn for no consideration upon fulfillment of certain conditions
on this basis the three entities  the “us joint venture” have been equity accounted for reflecting the groups effective 
47 interest in their aggregated results and assets
on 8 july 2013 agn llc obtained the required licences by the nevada gaming commission enabling it to provide online 
gaming services in the state of nevada in accordance with the stipulations of the licences
on 8 november 2013 aapn nj obtained the transactional waiver by the new jersey division of gaming enforcement 
enabling it to provide online gaming services in the state of new jersey for a period of six months from the date of the 
waiver and subject to final approval by the new jersey division of gaming enforcement
stock code 888
www888holdingsplccom financials
75 2312404   25 march 2014 624 am   proof 11
13 investment in equity accounted joint ventures continued
amounts relating to the joint ventures and the groups share of net assets and posttax losses of the joint venture are as 
follows
net assets of joint ventures
us joint 
ventures
us million
tsg
us million
total 
2013
us million
total 
2012
1
us million
noncurrent assets 59 — 59 23
current assets 60 — 60 —
current liabilities 36 — 36 22
net assets of joint ventures 83 — 83 01
group effective interest in joint ventures 47 50
group share of net assets of joint ventures 39 — 39 —
income statement of joint ventures
income — — — 02
expenses 87 — 87 02
post tax losses of joint ventures 87 — 87 —
group share of effective interest 47 50
group share of posttax losses of joint ventures 41 — 41 —
1
 amounts in 2012 relate solely to tsg
during 2013 the us jv launched regulated license gaming offering in the states of nevada and new jersey as a result 
substantial marketing costs were incurred in order to facilitate the penetration into these newly opened markets
on acquisition of the interest in aapn the difference of us19 million between the consideration paid of nil and the share 
of net assets of the entity of us19 million was accounted for as a profit on acquisition in line with ias 31
the group’s share of subsequent increases in the net assets of aapn arising from equity injections by its jv partners 
amounting to us 61 million has been accounted for through other comprehensive income
a reconciliation of the movements in the groups interest in equity accounted joint ventures is shown below
movements in interest in equity accounted joint ventures
us joint 
ventures
us million
tsg
us million
total
us million
investment in equity accounted joint ventures
at 1 january 2012 — 13 13
impairment — 13 13
at 31 december 2012 — — —
profit on acquisition of equity accounted joint venture 19 — 19
group share of equity injections by joint venture partner in equity accounted 
joint venture 61 — 61
share of posttax loss of equity accounted joint ventures 41 — 41
at 31 december 2013 39 — 39
14 financial assets — availableforsale investments
 31 december
2013
us million
2012
us million
balance at the beginning and end of the year 02 02
availableforsale assets comprise of unquoted securities the fair value of these has been determined on the basis of 
expected cash flows discounted using a rate based on the market interest rate and a premium specific to the unlisted 
securities fair value movements for 2012 and 2013 were insignificant
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
76 2312404   25 march 2014 624 am   proof 11
15 deferred taxes
deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and 
liabilities for financial reporting purposes and the amounts used for income tax purposes the group’s deferred tax assets 
resulting from temporary differences are as follows 
 31 december
2013
us million
2012
us million
accrued severance pay 04 04
property plant and equipment 09 06
intangible assets 13 08
provision for share benefit charges 01 02
provision for vacation 07 03
hedging gains 04 03
12 04
16 cash and cash equivalents 
 31 december
2013
us million
2012
us million
cash and cash equivalents 1112 781
restricted cash 46 34
1158 815
restricted cash represents customers’ funds held in designated accounts under regulated market licence requirements
17 short term investments 
 31 december
2013
us million
2012
us million
deposits 39 35
short term investments primarily relates to deposits held by banks to support guarantees in respect of regulated markets 
licence requirements
18 trade and other receivables
 31 december
2013
us million
2012
us million
trade receivables 209 201
other receivables and prepayments 105 61
314 262
the carrying value of trade receivables and other receivables approximates to their fair value as the credit risk has been 
addressed as part of   impairment provisioning and due to the shortterm nature of the receivables they are not subject to 
ongoing fluctuations in market rates
stock code 888
www888holdingsplccom financials
77 2312404   25 march 2014 624 am   proof 11
19 share capital 
share capital comprises the following
authorised
31 december
2013
number
31 december
2012
number
31 december
2013
us million
31 december
2012
us million
ordinary shares of £0005 each 426387500 426387500 39 39
authorised
31 december
2013
number
31 december
2012
number
31 december
2013
us million
31 december
2012
us million
ordinary shares of £0005 each at beginning of year 349688356 347687468 32 32
issue of ordinary shares of £0005 each 2288919 2000888 — —
ordinary shares of £0005 each at end of year 351977275 349688356 32 32
the following tables include details on issue of ordinary shares of £0005 each as part of the group’s employee share 
option plan see note 24 during 2013 and 2012
issued during 2013
ordinary 
shares of 
£0005 each
february 51087
march 125734
april 577874
may 865357
june 33783
july 19046
august 97787
september 8102
october 129837
november 376873
december 3439
shares issued during 2013 2288919
issued during 2012
ordinary 
shares of 
£0005 each
january 76816
april 362612
may 1106071
june 194988
august 161468
october 98933
shares issued during 2012 2000888
during 2013 the company issued 461406 shares 2012 nil in respect of employees’ exercising market value options 
giving rise to an increase in share premium of us08 million
shares issued are converted into us at the exchange rate prevailing on the date of issue the issued and fully paid share 
capital of the group amounts to us32 million 2012 us32 million and is split into 351977275 2012 349688356 
ordinary shares the share capital in uk sterling gbp is £18 million 2012 £17 million and translates at an average 
exchange rate of us182 2012 us182 to gbp 
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
78 2312404   25 march 2014 624 am   proof 11
20 trade and other payables
 31 december
2013
us million
2012
us million
trade payables 313 331
other payables accrued expenses and deferred income 612 500
925 831
the carrying value of trade and other payables approximates to their fair value given the short maturity date of these 
balances
21 contingent and deferred consideration
 31 december
2013
us million
2012
us million
other contingent consideration 04 07
the group has recognised contingent and deferred consideration on an acquisition in the year 2012 further details are 
given in note 10
contingent and deferred consideration — movements in the year 
wink bingo 
business
1
us million
others
us million
total
us million
contingent and deferred consideration at 1 january 2012 374 — 374 
other contingent and deferred consideration arising on acquisitions — 15 15
paid in year – capital amounts 355 12 367
movement in contingent and deferred consideration 24 04 20
foreign exchange differences on deferred consideration 05 — 05
contingent and deferred consideration at 31 december 2012 — 07 07
paid in year – capital amounts — 08 08
movement in contingent and deferred consideration — 05 05
contingent consideration at the end of the year — 04 04
1
  during the year 2012 the group paid an amount of us355 million and completed the settlement of the deferred consideration payable in 
respect of the wink acquisition following negotiations with the vendors the final amount payable was reduced and as a result  
us24 million was released to the consolidated income statement
22 liabilities to customers and progressive prize pools
 31 december
2013
us million
2012
us million
liabilities to customers 511 441
progressive prize pools 43 54
554 495
stock code 888
www888holdingsplccom financials
79 2312404   25 march 2014 624 am   proof 11
23 investments in significant subsidiaries
name
country of 
incorporation
percentage 
of equity 
interest 2013 

percentage 
of equity 
interest 2012 
 nature of business
cassava enterprises gibraltar 
limited
gibraltar 100 100 holder of gaming licences in gibraltar 
and main trading company
virtual marketing services uk 
limited
uk 100 100 advertising services
virtual marketing services gibraltar 
limited
gibraltar 100 100 marketing acquisition
dixie operation limited antigua 100 100 customer call center operator
random logic limited israel 100 100 research development and marketing 
support
brigend limited gibraltar 100 100 bingo business operator
fordart limited gibraltar 100 100 b2b business operator except bingo
new wave virtual ventures limited gibraltar 100 100 development of social games – 
mytopia
virtual internet services limited gibraltar 100 100 data hosting and development services
virtual marketing services italia srl italy 100 100 holder of italian online gaming licence
888 spain public limited company gibraltar 100 100 holder of spanish online gaming 
licence
virtual ip assets limited bvi 100 — holder of group ip assets
888 virtual limited gibraltar — 100 holder of group ip assets
888 us limited gibraltar 100 100 holder of interactive gaming service 
provider and manufacturer licence in 
the state of nevada
888 atlantic limited gibraltar 100 — holder of transactional waiver pending 
application for full licensing in the state 
of new jersey
888 us inc delaware 
usa
100 100 providing usbased services for us 
operations
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
80 2312404   25 march 2014 624 am   proof 11
24 sharebased payment 
the company has two equitysettled employee share incentive plans  the 888 allemployee share plan and the long
term incentive plan the 888 allemployee share plan is open to all employees and executive directors of the group who 
are not within six months of their normal retirement age at the discretion of the remuneration committee awards under 
this scheme will vest in installments over a fixed period of up to four years subject to the relevant individuals remaining in 
service certain of these awards are subject to performance conditions imposed by the remuneration committee at the 
dates of grant further details of which are given in the directors remuneration report on pages 37 to 39 
details of equity settled shares and share options granted as part of the 888 allemployee share plan are set out below 
share options granted
31 december 2013 31 december 2012
weighted 
average 
exercise 
price number
weighted 
average 
exercise 
price number
outstanding at the beginning of the year £ 141 3141422 £ 141 3645044
market value options lapsed during the year £ 147 112399 £ 141 503622
market value options exercised during the year £ 121 468423 — —
outstanding at the end of the year
123
£ 144 2560600 £ 141 3141422
1
  of the total number of options outstanding at 31 december 2013 2560600 had vested and were exercisable 2012 2923109
2
  the range of exercise prices for options outstanding at 31 december 2013 is £102£180 2012 £102£180
3
  the weighted average remaining contractual life at 31 december 2013 was 359 years 2012 474 years
ordinary shares granted without performance conditions
31 december
2013
number
2012
number
outstanding at the beginning of the year 2654091 5192919
shares granted during the year 405843 —
lapsed future vesting shares 24462 537940
shares issued during the year 1539988 2000888
outstanding at the end of the year 1495484 2654091
averaged remaining life until vesting 089 years 123 years
shares are granted at a nominal exercise price 
ordinary shares granted subject to performance conditions
31 december
2013
number
2012
number
outstanding at the beginning of the year 3205587 1175373
shares granted during the year 1049059 2134719
lapsed future vesting shares 17629 104505
shares issued during the year 287529 —
outstanding at the end of the year 3949488 3205587 
averaged remaining life until vesting 122 years 171 years
of these grants 50 of each are dependent on an eps growth target and 50 on total shareholder return tsr 
compared to a peer group of companies further details of performance conditions that have to be satisfied on these 
awards are set out in the directors remuneration report on pages 37 to 39 the eps growth target is taken into account 
when determining the number of shares expected to vest and the tsr target is taken into account when calculating the 
fair value of the share grant
stock code 888
www888holdingsplccom financials
81 2312404   25 march 2014 624 am   proof 11
24 sharebased payment continued
valuation information — shares granted under tsr condition
shares granted during the year
31 december
2013 2012
share pricing model used monte carlo monte carlo
determined fair value £114 £040
number of shares granted 524530 1067360
average riskfree interest rate 073 122
average standard deviation 53 51
average standard deviation of peer group 34 37
valuation information — shares granted
2013 2012
without 
performance 
conditions
with 
performance 
conditions
without 
performance 
conditions
with 
performance 
conditions
weighted average share price at grant date £154 £163 — £063
weighted average share price at issue of shares £160 £171 £072 —
ordinary shares granted for future vesting without tsr performance conditions are valued at the share price at grant date 
which the company considers approximates to the fair value the restrictions on the shares during the vesting period 
primarily relating to nonreceipt of dividends are considered to have an immaterial effect on the share option charge
in accordance with international financial reporting standards a charge to the income statement in respect of any shares 
or options granted under the above schemes is recognised and spread over the vesting period of the shares or options 
based on the fair value of the shares or options at the grant date adjusted for changes in vesting conditions at each 
balance sheet date these charges have no cash impact 
cashsettled sharebased payment
on 27 march 2012 the company awarded its chief executive officer a cash settled sharebased award “phantom award” 
the phantom award will be fully vested in three years from the grant date provided he remains in employment with the 
company on the third anniversary of the grant date under specific terms the phantom award will also vest if he leaves 
employment before the normal vesting date as detailed in the directors remuneration report
the amount payable is calculated on an incremental basis based on the average share price of the company over a period 
of 20 dealing days prior to the scheduled vesting date for the award the minimum amount payable is £025 million and 
the maximum amount payable is £55 million if the share price is above £200
valuation information
year ended 31 december
2013 2012
option pricing model used monte carlo monte carlo
share price at 31 december £173 £119
remaining life until vesting 124 years 224 years
riskfree interest rate 046 037
standard deviation 4310 5031
cash settled sharebased payment charge for the year amounts to us22 million 2012 us08 million and the liability 
recognised at 31 december 2013 amounts to us31 million 2012 us08 million
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
82 2312404   25 march 2014 624 am   proof 11
24 sharebased payment continued
share benefit charges
year ended 31 december
2013
us million
2012
us million
equity settled 
equity settled charge for the year 33 09
cash settled
charges in respect of the phantom option awards 22 08
total share benefit charges 55 17
25 related party transactions
the aggregate amounts payable to the directors as well as their sharebased charges are set out below
 year ended 31 december
2013
us million
2012
us million
short term benefits 31 29
postemployment benefits 01 01
share benefit charges — equity settled 10 03
share benefit charges — cash settled 22 08
64 41
further details on directors’ remuneration are given in the directors’ remuneration summary on pages 42 to 43
during 2013 the group charged the us joint venture for reimbursement of costs in the amount of us52 million out of 
which the outstanding balance for 31 december 2013 is us19 million
26 commitments 
lease commitments 
future minimum lease commitments under property operating leases at the year end are as follows 
leases expiring within
 year ended 31 december
2013
us million
2012
us million
one year 40 33
two to five years 83 92
123 125
the amount paid in the year was us36 million 2012 us35 million
lease commitments on the group’s property are shown to the date of the first break clause
27 financial risk management 
the group is exposed through its operations to risks that arise from use of its financial instruments policies and 
procedures for managing these risks are set by the board following recommendations from the chief financial officer the 
board reviews the effectiveness of these procedures and if required approves specific policies and procedures in order to 
mitigate these risks
the main financial instruments used by the group on which financial risk arises are as follows 
  cash and cash equivalents
  restricted cash
  short term investments
  trade and other receivables
  trade and other payables
  liabilities to customers
  available for sale financial investments 
stock code 888
www888holdingsplccom financials
83 2312404   25 march 2014 624 am   proof 11
27 financial risk management continued
detailed analysis of these financial instruments is as follows
financial assets
 31 december
2013
us million
2012
us million
trade receivables 209 201
other receivables 62 32
fair value of derivative financial instruments — 33
cash and cash equivalents 1112 781
restricted cash 46 34
short term investment 39 35
available for sale financial investments 02 02
1470 1118
in accordance with ias 39 all financial assets are classified as loans and receivables except for availableforsale assets 
2012 except for availableforsale assets and us33 million relating to forward currency contracts to hedge risks 
associated with foreign exchange rates such derivative financial instruments are measured at fair value under ias 39 and 
comprise level 2 fair value measurement instruments
financial liabilities
 31 december
2013
us million
2012
us million
trade payables 313 331
other payables and accrued expenses 518 407
fair value of derivative financial instruments 42 —
contingent and deferred consideration 04 07
liabilities to customers 554 495
1431 1240
in accordance with ias 39 all financial liabilities are held at amortised cost except for us04 million of contingent 
consideration arising on acquisitions and us42 million relating to the forward currency contracts to hedge risks 
associated with foreign exchange transactions which are recognised at fair value such derivative financial instruments are 
measured at fair value under ias 39 and comprise level 2 fair value measurement instruments 2012 except for us05 
million of contingent consideration arising on acquisitions which are recognised at fair value 
at 31 december 2013 and 2012 the fair value and the book value of the group’s financial assets and liabilities were 
materially the same 
capital
the capital employed by the group is composed of equity attributable to shareholders the primary objective of the group 
is maximising shareholders’ value which from the capital perspective is achieved by maintaining the capital structure 
most suited to the group’s size strategy and underlying business risk other than disclosed elsewhere in note 28 there are 
no demands or restrictions on the group’s capital 
the main financial risk areas are as follows 
credit risk
trade receivables
the group’s credit risk is primarily attributable to trade receivables due primarily from the group’s payment service 
providers ‘psp’ these are third party companies that facilitate deposits and withdrawals of funds to and from customers’ 
virtual wallet with the group these are mainly intermediaries that transact on behalf of the main credit card companies 
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
84 2312404   25 march 2014 624 am   proof 11
27 financial risk management continued
the risk is that a psp would fail to discharge its obligation with regard to the balance owed to the group the group 
reduces this credit risk by 
  monitoring those balances on a regular basis
  arranging for the shortest possible cash settlement intervals
  replacing rolling reserve requirements where they exist with a letter of credit by a reputable financial institution
  ensuring a new psp is only contracted following various due diligence and ‘know your customer’ procedures
  ensuring policies are in place to reduce dependency on any specific psp and as a result gain high degree of 
diversification
the group believes that based on the above and on extensive past experience the psp receivables are of good credit 
quality and there is no requirement to provide for any potential bad debts arising from a psp failing to discharge its 
obligation none of the balances owed by the various psp are overdue or impaired 2012 nil
an additional credit risk the group faces relates to customers disputing charges made to their credit cards ‘chargebacks’ 
or any other funding method they have used in respect of the services provided by the group customers may fail to fulfil 
their obligation to pay which will result in funds not being collected these chargebacks and uncollected deposits when 
occurring will be deducted at source by the psps from any amount due to the group as such the group provides for 
these eventualities by way of a provision based on analysis of past transactions this provision is netted off from the trade 
receivables balance and at 31 december 2013 was us12 million 2012 us11 million 
the group’s inhouse fraud and risk management department carefully monitors deposits and withdrawals by following 
prevention and verification procedures using internally developed bespoke systems integrated with commercially available 
third party measures 
cash and cash equivalents 
the group controls its cash position out of its gibraltar headquarters subsidiaries in its other main locations maintain 
minimum cash balances which are deemed required for their operations 
cash settlement proceeds from psps as described above are paid into bank accounts controlled by the treasury function 
the group maintains its funds with highly reputable financial institutions and will not hold funds with financial institutions 
with low credit rating 
the group maintains its cash reserves in highly liquid deposits and regularly monitors rates in order to maximize yield
restricted cash
restricted cash represents customers’ funds held for payment service provider transactions in respect of regulated markets
short term investments
short term investments primarily relates to deposits held by banks for guarantees in respect of regulated markets licence
the group’s maximum exposure to credit risk by type of financial instrument is summarised below 
 31 december 2013 31 december 2012
carrying 
value
us million
maximum 
exposure
us million
carrying 
value
us million
maximum 
exposure
us million
trade receivables 209 209 201 201
other receivables 62 62 32 32
fair value of derivative financial instruments — — 33 33
cash and cash equivalents 1112 1112 781 781
restricted cash 46 46 34 34
short term investment 39 39 35 35
available for sale financial investments 02 02 02 02
1470 1470 1118 1118
liquidity risk 
liquidity risk exists where the group might encounter difficulties in meeting its financial obligations as they become due 
the group monitors its liquidity in order to ensure that sufficient liquid resources are available to allow it to meet its 
obligations 
stock code 888
www888holdingsplccom financials
85 2312404   25 march 2014 624 am   proof 11
27 financial risk management continued 
the following table details the contractual maturity analysis of the group’s financial liabilities
31 december 2013
trade 
payables
us million
other 
payables
1
us million
contingent 
consideration
us million
liabilities to 
customers
us million
total
us million
on demand 63  33 — 554 650
in 3 months 230  395  01 — 626
between 3 months and 1 year 20  101  03 — 124
more than 1 year — 31 — — 31
313 560 04 554 1431
1
 includes other payables accrued expenses derivative financial liabilities and provisions and excludes deferred income
31 december 2012
trade 
payables
us million
other 
payables
1
us million
contingent 
consideration
us million
liabilities to 
customers
us million
total
us million
on demand 69  21  —  495  585 
in 3 months 248  333  03  —  584 
between 3 months and 1 year 14  45  04  —  63 
more than 1 year —  08 —  —  08 
 331  407 07 495  1240 
1
 includes other payables accrued expenses and provisions and excludes deferred income 
market risk 
interest rate risk 
the group’s exposure to interest rate risk is limited to the interest bearing deposits in which the group invests  
surplus funds 
the group’s policy is to invest surplus funds in low risk money market funds and in interest bearing bank accounts the 
group arranges for excess funds to be placed in these interest bearing accounts with its principal bankers in order to 
maximise availability of funds for investments 
downside interest rate risk is minimal as the group has no floating rates borrowings given current low interest rates a 
05 downward movement in bank interest rates would not have a significant impact on finance income for the year 
however a 05 increase in interest rates would based on the year end deposits increase annual profits by us04 million 
currency risk 
the group’s financial risk arising from exchange rate fluctuations is mainly attributed to 
  mismatch between balance sheet liabilities to customers which is predominantly denominated in us and the net 
receipts from customers which are settled in the currency of the customer’s choice of which sterling gbp and euros 
eur are significant
  mismatch between reported revenue which is mainly generated in usd the group’s functional and reporting currency 
and a significant portion of deposits which are settled in local currencies 
  expenses the majority of which are denominated in foreign currencies including sterling gbp euro eur and new 
israeli shekel ils
the group continually monitors the foreign currency risk and takes steps where practical to ensure that the net exposure 
is kept to an acceptable level inter alia by using foreign exchange forward contracts designed to fix the economic impact 
of known liabilities at 31 december 2013 the group had entered into us dollargb pound and us dollareuro forward 
contracts totaling us146 million regarding 2014 expected currency excess in gb pound and euro the total fair value 
of the forward contracts was us42 million liability to be settled on a monthly basis throughout 2014 during 2012 the 
group had entered into israeli shekelus dollar outstanding forward contracts totaling us81 million regarding 2013 
operational business costs incurred in israeli shekels in addition the group had entered into us dollar gb pound as well 
as us dollareuro forward contracts totaling us140 million regarding 2013 currency excess in gb pound and euro the 
total fair value of the forward contracts as at 31 december 2012 was us 33 million asset which had been settled during 
the year 2013
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
86 2312404   25 march 2014 624 am   proof 11
27 financial risk management continued
the tables below detail the net financial position by currency at 31 december 2013 and 2012
31 december 2013
gbp
us million
eur
us million
ils
us million
usd
us million
other
us million
total
us million
cash and cash equivalent 165 74 159 689 25 1112
restricted cash — 46 — — — 46
receivables 90 73 04 57 47 271
short term investments — 29 10 — — 39
availableforsale financial 
investments — — — 02 — 02
net monetary assets 255 222 173 748 72 1470
payables 367 165 243 642 14 1431
net monetary liabilities 367 165 243 642 14 1431
net financial position 112 57 70 106 58 39
31 december 2012
gbp
us million
eur
us million
ils
us million
usd
us million
other
us million
total
us million
cash and cash equivalent 169 73 74 449 16 781
restricted cash — 34 — — — 34
receivables 99 60 49 36 22 266
short term investments — 27 08 — — 35
availableforsale financial 
investments — — — 02 —  02 
net monetary assets 268 194 131 487  38 1118
payables 213 173 205 631 18 1240
net monetary liabilities 213 173 205 631 18 1240
net financial position 55  21  74 144 20  122
sensitivity analysis 
the table below details the effect on profit before tax of a 10 strengthening and weakening in the us dollar exchange 
rate at the balance sheet date for balance sheet items denominated in sterling euros and new israeli shekels 
 year ended 31 december 2013
gbp
us million
eur
us million
ils
us million
10 strengthening 10 06 07
10 weakening 10 06 07
 year ended 31 december 2012
gbp
us million
eur
us million
ils
us million
10 strengthening 06 02 07
10 weakening 06 02 07
stock code 888
www888holdingsplccom financials
87 2312404   25 march 2014 624 am   proof 11
28 fair value measurements
materially the group’s financial instruments carried at fair value are in respect of derivative foreign exchange contracts 
the carrying value of derivative foreign exchange contracts was a liability of us42m at 31 december 2013 2012 an asset 
of us33m these comprise level 2 fair value measurement instruments valued using forward exchange rates that are 
quoted in an active market
other financial instruments carried at fair value are not considered material there were no changes in valuation techniques 
or transfers between categories in the period
the fair value of the following financial assets and liabilities approximate to their carrying amount
  trade and other receivables
  other current financial assets
  cash and cash equivalents
  trade and other payables
  customer deposits
the following table sets out the group’s material liabilities that are measured and recognised at fair value at 31 december 
2013
as at 31 december 2013
level 2
us million
financial liabilities
derivatives at fair value 42
29 contingent liabilities and regulatory issues
a as part of the board’s ongoing regulatory compliance and operational risk assessment process the board continues 
to monitor legal and regulatory developments and their potential impact on the business and continues to take 
appropriate advice in respect of these developments 
b given the nature of the legal and regulatory landscape of the industry from time to time the group has received 
notices communications and legal actions from a small number of regulatory authorities and other parties in respect 
of its activities the group has taken legal advice as to the manner in which it should respond and the likelihood of 
success of such actions based on this advice and the nature of the actions the board is unable to quantify reliably any 
material outflow of funds that may result if any accordingly no provisions have been made 
c the group operates in numerous jurisdictions accordingly the group is filing tax returns providing for and paying 
all taxes and duties it believes are due based on local tax laws transfer pricing agreements and tax advice obtained 
the group is periodically subject to audits and assessments by local taxing authorities the board is unable to 
quantify reliably any exposure for additional taxes if any that may arise from the final settlement of such assessments 
accordingly no additional provisions have been made
notes to the consolidated financial statements
888 holdings plc  annual report  accounts 2013
88 2312404   25 march 2014 624 am   proof 11
note
31 december
2013
us million
2012
us million
assets
noncurrent assets
investments in subsidiaries 2 261 234
261 234
current assets
trade and other receivables 3 741 2255
cash and cash equivalents 4 07 176
748 2431
total assets 1009 2665
equity and liabilities
equity
share capital 5 32 32
share premium 09 01
retained earnings 708 325
total equity 749 358
liabilities
current liabilities
trade and other payables 6 229 2299
noncurrent liabilities
share benefit charges  cash settled 31 08
total liabilities 260 2307
total equity and liabilities 1009 2665
the financial statements on pages 89 to 93 were approved and authorised for issue by the board of directors on 25 march 2014 
and were signed on its behalf by
brian mattingley
chief executive officer
aviad kobrine
chief financial officer
the notes on pages 92 to 93 form part of these financial statements
company balance sheet 
at 31 december 2013
stock code 888
www888holdingsplccom financials
89 2312404   25 march 2014 624 am   proof 11
company statement of changes in equity
for the year ended 31 december 2013
share
capital
us million
share
premium
us million
retained
earnings
us million
total
us million
balance at 1 january 2012 32 01 43 10
dividend paid — — 87 87
issue of shares — — — —
share benefit charges — — 09 09
total comprehensive income for the year — — 446 446
balance at 1 january 2013 32 01 325 358
dividend paid — — 332 332
issue of shares — 08 — 08
share benefit charges — — 33 33
total comprehensive income for the year — — 682 682
balance at 31 december 2013 32 09 708 749
the following describes the nature and purpose of each reserve within equity 
share capital — represents the nominal value of shares allotted calledup and fully paid 
share premium — represents the amount subscribed for share capital in excess of nominal value 
retained earnings — represents the cumulative net gains and losses recognised in the consolidated statement of  
comprehensive income 
the notes on pages 92 to 93 form part of these financial statements
888 holdings plc  annual report  accounts 2013
90 2312404   25 march 2014 624 am   proof 11
company statement of cash flows 
for the year ended 31 december 2013
year ended 31 december
2013
us million
2012
us million
cash flows from operating activities
profit before income tax 704 465
adjustments for
interest received — 01
share benefit charges 29 11
increase in net amounts owed by subsidiaries 537 359
decrease increase in other accounts receivables 01 03
decrease increase in trade payables 15 14
decrease in other accounts payables 04 19
cash generated from operations 178 108
tax paid 23 10
net cash generated from operating activities 155 98
cash flows from investing activities
interest received — 01
net cash generated from investing activities — 01
cash flows from financing activities
issue of shares 08 —
dividends paid 332 87
net cash used in financing activities 324 87
net decrease increase in cash and cash equivalents 169 12
cash and cash equivalents at the beginning of the year 176 164
cash and cash equivalents at the end of the year 07 176
the notes on pages 92 to 93 form part of these financial statements
stock code 888
www888holdingsplccom financials
91 2312404   25 march 2014 624 am   proof 11
notes to the company financial statements
1 general information and accounting policies 
a description of the company its activities and definitions are included in note 1 to the consolidated financial statements 
the company has applied accounting policies identical to the group’s accounting policies listed in note 2 to the 
consolidated financial statements other than in relation to investments in its subsidiaries which are held at cost less any 
impairment provision required 
the following standard issued by the iasb has not been adopted by the company as this was not effective for the year 
2013 the company is currently assessing the impact this standard will have on the presentation of its results in future 
periods 
ias 27 separate financial statements effective for accounting periods beginning on or after 1 january 2014 
under section 102 of the gibraltar consolidated accounts act 1999 the company is exempt from the requirement to 
present its own income statement 
2 investments in subsidiaries
the company’s principal subsidiaries are listed in note 23 to the consolidated financial statements and are held at cost 
less provision for any impairment the group applies ifrs 2 ‘share based payments’ consequently the parent company 
recognises as a cost of investment the value of its own shares that it makes available for the purpose of granting share 
options to employees or contractors of its subsidiaries the movement on investment in subsidiaries in both years was in 
respect of ifrs 2 this amount was us27 million in 2013 2012 us06 million
3 trade and other receivables
31 december
2013
us million
2012
us million
amounts due from subsidiaries 738 2252
other receivables and prepayments 03 03
741 2255
the carrying value of trade and other receivables approximate to their fair value none of the balances included within 
trade and other receivables are past due or impaired amounts due from subsidiaries are payable on demand
4 cash and cash equivalents
31 december
2013
us million
2012
us million
cash and cash equivalents 07 176
07 176
5 share capital
the disclosures in note 29 to the consolidated financial statements are identical for the company 
6 trade and other payables
31 december
2013
us million
2012
us million
trade payables 04 19
amounts due to subsidiaries 172 2223
corporate tax 11 16
other payables and accrued expenses 42 41
229 2299
the carrying value of trade and other payables approximate to their fair value all balances included within trade and other 
payables are repayable on demand
  
888 holdings plc  annual report  accounts 2013
92 2312404   25 march 2014 624 am   proof 11
notes to the company financial statements
7 financial risk management
the company’s financial risk management objectives and policies are identical to those of the group as disclosed in note 
27 to the consolidated financial statements 
8 contingent liabilities
the disclosures in note 29 to the consolidated financial statements are identical for the company 
9 sharebased payment 
the disclosures in note 24 to the consolidated financial statements are identical for the company except that the charge 
for the year is partly taken to investment in subsidiaries as set out in note 2
10 related party transactions 
during the year the company was credited with dividends from its subsidiaries totaling us861 million and paid to its 
shareholders dividends totaling us332 million 2012 us87 million 
share benefit charges in respect of options and shares of the company awarded to employees of subsidiaries totalled 
us27 million 2012 us06 million 
during the year subsidiaries of the company participated in funding its costs which totalled us125 million  
2012 us112 million at 31 december 2013 net amount owed by subsidiaries to the company amounted to  
us566 million 2012 net amount owed by subsidiaries to the company us29 million 
the aggregate benefits paid to the directors of the company by its subsidiaries set out below
year ended 31 december
2013
us million
2012
us million
short term benefits 02 02
11 significant non cash transactions
during the year the company was a party to arrangements made by the group to rationalise the intercompany balances 
within the group under these arrangements certain intercompany balances were novated to and from the company and 
its subsidiaries and certain intercompany balances were forgiven by subsidiary companies as a result movements on 
intercompany debtor and creditor balances of us238 million and us238 million respectively in the period did not arise 
as a result of cash transfers and have therefore been excluded from the company cash flow
stock code 888
www888holdingsplccom financials
93 2312404   25 march 2014 624 am   proof 11
shareholder information 
group websites 
a range of shareholder information is available in the investor 
relations area of the group’s website www888holdingsplc
com including 
  latest information on the group’s share price 
  information on the group’s financial performance
  news and events 
the following websites can also be accessed through the 
group’s main website www888com or are available directly 
usa
888’s new jersey poker and casino games are offered 
through its us regulated website
  us888pokercom 
  us888casinocom 
  us888com 
spain
888’s spain poker and casino games are offered through its 
spanish regulated website
  www888es 
  www888pokeres 
  www888casinoes 
italy
888’s italy casino games are offered through its italian 
regulated website
  www888it 
  www888casinoit 
casino 
888’s casino games are offered through its 888casino and live 
casino
  www888casinocom 
  wwwcasinoonnetcom
  wwwreefclubcasinocom
poker 
888’s poker offering is through 888poker
  www888pokercom
  wwwpacificpokercom
  wwwluckyacepokercom
sportsbook 
888’s sportsbook offering is through 888sport
  www888sportcom 
bingo 
888’s bingo offering is through 888ladies and wink
  www888ladiescom 
  wwwwinkbingocom
  wwwposhbingocouk
  wwwtastybingocom
  wwwredbusbingocom
  wwwbingostreetcom
  wwwbigbrotherbingocom
  www888bingocom
  wwwbingofabulouscom
games
888’s games offering is through 888games
  www888gamescom
  www888playcom 
mytopia social games 
888’s social games are offered through mytopia social games 
websites
  wwwmytopiacom 
  wwwbingoislandcom 
responsible gaming 
the group’s dedicated site focusing on responsible gaming
  www888responsiblecom
888 holdings plc  annual report  accounts 2013
94 2312404   25 march 2014 624 am   proof 11
stock code 888
www888holdingsplccom financials
95 2312404   25 march 2014 624 am   proof 11
888 holdings plc  annual report  accounts 2013
96 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
uk
tel 0870 162 3100
wwwcapitaregistrarscom
further information
for further information please contact 
info888holdingsplccom
principal bankers
barclays bank plc
1 churchill place
london
e14 5hp
uk
solicitors
freshfields bruckhaus deringer
65 fleet street
london
ec4y 1hs
uk
hassans
5763 line wall road
gibraltar
company secretary
strait secretaries limited
5763 line wall road
gibraltar
auditors
bdo llp
chartered accountants 
55 baker street
london 
w1u 7eu
uk
registered auditors
bdo limited 
regal house
queensway
gibraltar
2312404   25 march 2014 624 am   proof 11
incorporated in gibraltar with registered number 90099
www888holdingsplccom
stock code 888 2312404   25 march 2014 624 am   proof 11
888 holdings plc
suite 601701 europort
europort road
gibraltar
t 350 20049800
f 350 20048280
e info888holdingsplccom
www888holdingsplccom
stock code 888 888 holdings plc  annual report  accounts 2013


Summary:
 2312404   25 march 2014 624 am   proof 11
www888holdingsplccom www888holdingsplccom
  
“a recordbreaking year for 888”
brian mattingley chief executive officer
2013 overview 
2013 was a very busy but also exceptionally rewarding year 
for 888 i am delighted to report that we have delivered 
recordbreaking revenue increased our profitability remained 
highly cash generative and delivered greater returns to our 
shareholders through a 56 increase to the dividend 
our operational achievements in 2013 are equally impressive 
we continued to deliver product innovation ensuring that our 
customers are provided with the most enjoyable games in the 
safest possible environment we made further developments 
to our industryleading ‘smart marketing’ so that we are able 
to attract more players to the 888 brand and increase their 
life time value we delivered excellent progress in our core 
markets continued to develop our offering in italy and built 
on momentum in spain where we have quickly developed a 
leading market position we delivered another very strong 
performance in casino and made further market share gains 
in poker advancing to number two in the pokerscout global 
rankings at the year end 
all of this was achieved whilst devoting significant energy 
and resources to preparing 888 for launch in the us market 
i am incredibly proud to say that 888 is the only operator 
currently present in all three regulated states as we execute 
our strategy in what is potentially the largest online gaming 
market globally this remarkable achievement is testament to 
the strength of our product technology and marketing but 
also and most crucially the hard work dedication and talent 
of our team i would like to take this opportunity to thank 
each of them for their fantastic efforts during the year
i am delighted with 888’s achievements in 2013 and look 
forward to the year ahead with continued confidence 
market overview
the online gaming market is dynamic and fastgrowing 
growth over the coming years will continue to be driven by 
a combination of customers responding to innovative games 
that deliver a richer entertainment experience the growing 
use of mobile devices that improve accessibility increased 
confidence in secure lowcost payment mechanisms and an 
expanding customer demographic partly driven by regulatory 
trends that are opening up more markets to online gaming
it is forecast that the value of the global online gaming market 
will be approximately €315 billion by 2015 representing a 
cagr of more than 9 from 2012 this does not take account 
of the additional opportunities being opened up in the united 
states which represents a potentially massive opportunity 
for the industry nevada delaware and new jersey were 
regulated by the end of 2013 and other states are expected to 
make significant progress towards regulation this coming year 
as regulation continues analysts predict that the us could 
become the largest online gaming market in the world
in more mature markets such as the united kingdom  
we anticipate that there will be further consolidation  
given the advantages of scale brand and technology 
that larger operators can employ in a more competitive 
environment this trend will be reinforced by the planned 
introduction of a point of consumption tax in the uk due to 
take effect from december 2014 
online mobile gaming on portable devices such as tablets 
and smartphones is growing strongly reflecting consumers’ 
increasing comfort using their mobile phones and tablets for 
a wide range of products and services including banking and 
shopping  mobile devices will account for a much greater 
proportion of revenue as customers complement or replace 
their pcbased experience
our strategy
888 is one of the world’s most popular online gaming 
entertainment and solutions providers we have been at the 
forefront of the industry for more than 15 years by providing 
customers with market leading products that are localised to 
enable players to enjoy the games they want in the languages 
they speak in a safe and secure environment 
the group is structured into two business lines b2c with our 
market leading 888 brands and b2b conducted as dragonfish 
business this structure allows the group to leverage its 
technological product marketing and analytical strengths 
across b2c and b2b this maximises their benefits and allows 
888 to compete successfully with and surpass our competition 
in both established and newer markets 
  value of online gaming market in terms of gross win  
source h2 gambling capital 2014
chief executive’s review
stock code 888
03
www888holdingsplccom strategic report 2312404   25 march 2014 624 am   proof 11
there are clear opportunities in our global markets we are 
well placed to deliver growth across all areas of our business 
generating value for our shareholders as the wellestablished 
trend towards more international regulation continues and 
new technologies evolve our strategy to achieve this is made 
up of five key pillars  
growth and development of our core products
we are focused on the growth and development of our core 
product groups which are casino poker bingo and to a lesser 
extent sport where we work with a partner these products 
are delivered via our b2c offering under 888’s own brands 
and to our b2b clients through dragonfish 
‘bestinclass’ b2c offer
our b2c offering remains our core area and the bedrock of 
the success of the business we continue to invest in and 
focus on ensuring that we deliver an unsurpassed customer 
experience by developing bestinclass products maintaining 
excellence in customer service and ensuring we deliver a real 
valueformoney proposition to our customers this together 
with our advanced modeling and analytics competencies that 
underpin our product development and crm functions help 
us achieve our objectives to increase customer numbers 
further develop brand loyalty and enhance customer lifetime 
value 
partner of choice through dragonfish – our b2b offer
dragonfish is 888’s b2b arm which offers clients best in class 
total gaming services solutions that are tested vigorously to 
meet the regulatory requirements of the different jurisdictions 
where they are delivered the quality of our offering driven 
by our continuous investment in developing leading gaming 
platforms means that we are fast establishing ourselves as 
the partner of choice in both regulated and newly regulating 
markets this has been evidenced by the key strategic deals 
we have signed in 2013 alongside the deal we signed with 
caesars interactive entertainment in 2012 enabling 888 to 
become the only online gaming operator with a presence in all 
three regulated us states  
driving margin growth through operational efficiencies
we remain focused on improving our margins by maximising 
operational efficiencies and driving volume 2013 saw 
us continue to deliver progress in this area with further 
operational efficiencies driven across the business resulting in 
our adjusted ebitda margin improving to 189 2012 178
expansion in regulated markets
we are focused on developing our presence in locally 
regulated markets a key advantage of having our own 
technology product development marketing analytics and 
crm teams working closely together is that it allows us to 
control the key drivers for our success this ensures that we 
have the agility and skills to successfully and efficiently launch 
in newly regulated markets
2013 has seen us build further momentum in the european 
markets of the uk spain and italy and we are delighted 
with the progress we have continued to make building 
strong market positions especially in spain we classify the 
regulation of markets into three categories
chief executive’s review
04
888 holdings plc  annual report  accounts 2013 2312404   25 march 2014 624 am   proof 11
developmental – these are jurisdictions where there is a 
strong indication that at some time in the near future the 
market will open here we talk to local industry participants 
with a view to forming partnerships to jointly explore 
opportunities the us continues to be a primary focus 
for us and we believe our strong position in those states 
already regulated combined with our focused strategy 
and established partnerships position us well to take full 
advantage of the opportunities as regulation develops   
formational – these are markets where governments have 
announced regulation and are working towards a framework 
here we decide on a trading strategy start dialogue with 
local partners either for b2c or b2b tie ups and engage with 
regulators and governments to assist in shaping the industry 
framework 
implementational – these are markets where regulation has 
been introduced and we have already commenced trading 
in 2013 we made excellent further progress and built strong 
positions in both spain and italy both of which have recently 
regulated in the second half of 2013 we commenced 
operations in nevada delaware and new jersey in the us and 
have made good progress at this early stage
us development – strategy and current alliances
the us market is a demanding environment with strict 
regulatory requirements that vary from state to state however 
the opportunities are potentially vast
our successful launch in the regulated us market to date is 
testament to our product technology and marketing as well 
as the hard work dedication and talent of our team who have 
been able to meet the complex regulatory requirements in 
each state to pressing deadlines we have developed close 
working relationships with the various regulatory bodies in 
the us and these relationships along with the experience 
and skills we have developed to date mean that we are well 
positioned to exploit the us opportunity as further states 
open up to online gaming 
in march 2013 888 completed a major step in its us strategy 
by entering into a joint venture agreement with global 
investment firm avenue capital group through one of its 
affiliates to form aapn holdings llc aapn holdings was 
formed for the purposes of collaborating and capitalising on 
888’s and avenue’s respective strengths and competencies 
in order to carry out legalised internet based gambling 
operations in the united states pursuant to the agreement 
avenue committed to finance aapn and its affiliates while 
888 committed to provide its operational expertise services 
and software  in november 2013 one of 888’s subsidiaries 
received an authorization from the regulators in the state 
of new jersey that enabled it to begin provision of internet 
based gambling services in new jersey branded with the 
888poker and 888casino brands under the authority of the 
regulatory license issued to caesars interactive entertainment
our joint venture agreement crucially allows our us 
operations to make a positive contribution to group 
revenue from the moment we launched limiting our capital 
requirements and giving 888 the flexibility and financial 
capability to launch in more markets globally as they regulate 
stock code 888
05
www888holdingsplccom strategic report