SOURCE: Reuters

(London, England) — British gambling firm Rank Group Plc (RNK.L: Quote, Profile , Research) said on Monday its Blue Square Web site would provide a sports betting service for London-listed online poker and casino company 888 Holdings Plc (888.L: Quote, Profile , Research).

Under the terms of the partnership, Blue Square will manage fixed odds betting and sports content for 888, which will provide its payment processing platform to Blue Square as it takes its own sports betting to new international markets.

"We will benefit from 888's international experience and liquidity as we extend our reach beyond the UK," Rank said in a statement.

888, which expects to start its new service in the first quarter of 2008, said: "Our analysis shows that a significant proportion of our players bet on sport events occasionally, and the inclusion of sports betting in our offering is in line with our focus to aid customer acquisition".

Online gambling firms that previously offered only poker and casino games have had a harder time over the past year after the United States effectively banned Internet gambling, and sites like 888 and PartyGaming Plc (PRTY.L: Quote, Profile , Research) having looked to rebuild their business.

Rank shares were up 0.3 percent at 94.75 pence in early trading while 888 was unchanged at 130.5 pence.