THE chief executive of Cassava Enterprises, the Gibraltar-based internet gambling operator behind 888.com, looks set to pocket up to $60 million (£35 million) when the company floats on the London Stock Exchange as early as next month.

The disclosure will re-ignite the issue of corporate rewards in the gambling industry after the huge payouts to the board of PartyGaming, the world’s biggest internet poker company, when it floated in London at the end of June. John Anderson, who also runs Burford, the property group, is understood to be sitting on a potential stake of as much as 4 per cent in Cassava when it pursues an initial public offering (IPO).

The IPO, which analysts believe could take place as early as next month, is expected to value the company at more than $1.5 billion (£850 million). It is tipped to deliver earnings before interest, tax, depreciation and amortisation (ebitda) of about $70 million this year. Cassava recently appointed HSBC to advise on its strategic options and the success of PartyGaming’s recent £4.64 billion IPO is expected to provide the impetus for the company to take the same route.

The PartyGaming listing crystallised a £50 million-plus paper fortune for Richard Segal, its chief executive, while even the non-executive directors shared several million pounds.

The biggest winners from Cassava’s IPO will be the two pairs of Israeli brothers who founded the company seven years ago. Avi and Aaron Shaked have a stake of about 70 per cent, while a family trust controlled by Shay and Ron Ben-Yitzhak has about 20 per cent.

Shay Ben-Yitzhak is the only one of the four men involved in the day-to-day running of the business. They set up the business after buying a gaming licence in Antigua for $100,000.

Like PartyGaming, Cassava’s poker and casino websites draw many players from the US, where internet gambling remains a legal grey area, and the issue is bound to attract fresh comment when Cassava lists its shares.

Credit Suisse First Boston, which has been advising Cassava’s shareholders, had been expected to act as adviser to the company but is understood to have decided against such a move over the US legality question. HSBC, which will act as lead underwriter to the issue, is expected to work alongside Numis and Lazard in preparing the company for flotation.

Cassava is only one of several gambling companies considering a listing. Coral Eurobet, the bookmaker, and Gala, the bingo and casino operator, have both appointed advisers to possible listings, while internet-based operators are queuing up to cash in on the interest created by PartyGaming.

While PartyGaming looks set to enter the blue-chip FTSE 100 index next month, Cassava, Coral and Gala are all candidates for the FTSE 250. Cassava said yesterday that it had made no firm decision on an IPO.