The online gambling giant 888 has agreed a new timetable for the earn out payments to Daub Ltd in relation to Wink Bingo which was due to be settled in May.

The company said that as a result of Wink Bingo being an extremely successful acquisition and performing better that had been expected the earn out payment would be at the higher end of the range. 888 confirmed that the earn out period is due to end at the end of March and result would be known in May.

The new payment agreement will see 888 make an immediate payment of £9.26 million, a payment on the 21st May of £9.26 million and a payment on 31st August of £6.173 million. A remaining payment of up to £23 million will be payable by May 2012.

If there is a change at 888 Holdings before it has fully paid for Wink bingo (which is quite likely if talks with Ladbrokes progress) Daub could compel 888 Holdings to sell the bingo business to enable payments to be made. This is also applicable if Gigi Levy leaves the board of 888 Holdings or if the company defaults on payments.

Daub has also been given security over the assets comprising Wink Bingo so it could sell the business for the outstanding earn-out amount in the event 888 Holdings went into administration or liquidation.

Until the repayments have been completed 888 Holdings is limited by a number of restrictions in relations to paying dividends, management fees, bonuses.