888 Decides to Depart from the U.S. Market and Transfers Its Assets to Hard Rock
Gambling titan 888 reveals strategy to fully depart from the American gambling market and offload selected holdings to Hard Rock Digital (HRD). However, the transaction hinges upon regulatory approvals and specific prerequisites.
Transaction with Hard Rock set to conclude by year's end in 2024
According to an article from betting news outlet iGB, 888 aims to finalize the transaction in stages by the final quarter of 2024. The sale of their US B2C service had been whispered about in early March 2024.
888 opted for the sale due to slimmer profit margins in the US relative to the remainder of their group. The proposed sale will leave their US B2B business unaffected.
By abandoning the US market, 888 anticipates an enhanced adjusted profit by roughly $29.2 million (€31.6 million). However, the departure also entails expenses of around $50 million (€46 million) as a result of a cancellation fee for license terminations. Currently, 888 has a presence in the United States states of Colorado, Michigan, New Jersey, and Virginia.
888 Holdings: One of the most prominent international gambling service providers
888 Holdings ranks among the most prominent global providers of online gambling. In 1997, they introduced one of the first online casinos, 888casino. They also run a sports-betting platform (888sport) and their very own poker site (888poker).
Moreover, the 888 Holdings assortment includes the gambling brands Mr Green and William Hill, which they acquired in the second quarter of 2022. 888 is also engaged as a sponsor of athletic teams, exemplified by their partnership with the German football Bundesliga club RB Leipzig.
888's plans for strategic reorganization of the company
888 Holdings seems to be pursuing a strategic restructuring of the gambling corporation and has plans to rename themselves to Evoke in the future.
The company also intends a new operational structure designed to realize cost savings of $37 million (€34 million). In addition, the market approach for their core markets, including the UK, Italy, Spain, and Denmark, will be streamlined. Existing markets will be enhanced to yield better returns in the future.
Following the strategic restructuring plans, 888 Holdings might consider expanding its online presence in Germany, given its reputation as a major international gambling service provider. Despite the successful sale of their US B2C service, 888 could explore opportunities in the German online casinos market, leveraging its experience and expertise in the field.
In light of the proposed name change to Evoke, 888 could potentially explore partnerships with German online casinos, aiming to establish a strong foothold in the German market and cater to the growing demand for online gambling, while adhering to all relevant German gambling regulations.
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