Posted: 17/07/2009 - 888 will not buy Foxybingo.

Gigi Levy has told EGRmagazine.com that 888 would not be buying Cashcade and that the company’s lack of a US settlement did not prevent it from raising the funds needed to buy the online bingo firm.

Cashcade is the parent company of Foxy Bingo and is headed up by chief executive Patrick Southon and commercial director Simon Collins. It is one of the leading bingo sites in the UK and has been going through a bidding process for the past three months. PartyGaming and one other party are currently believed to be in the running for the company, which is believed to be available for around £80m.

When asked if the lack of a US settlement prevented 888 from raising the funds to carry out consolidation activity and acquire Cashcade, 888's chief executive replied: “Definitely not.”

Levy added: “We had bank financing for the acquisition, we just didn’t want to pay the price they were asking for. 888 is interested in Cashcade but there are other companies that are more interested in it and are willing to pay more for it.”

Unlike contemporaries PartyGaming and Sportingbet, 888 has not made any recent announcements about reaching a settlement with the US authorities over its US activities prior to the passing of the Unlawful Internet Gambling Enforcement Act.

Levy would not comment on any current developments regarding 888 reaching a settlement with the US authorities. Levy last week said America would restrict egaming licences to US companies even if it did overturn UIGEA and regulate online gaming.

Cashcade is 888’s biggest licensee on its Globalcom bingo software platform. The reason 888 is not worried about a change of ownership is because it has a binding contract which will keep Cashcade on Globalcom for at least the next two years.

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