Online gaming company 888 Holdings has announced that the group will be reviewing its business operations and will likely reduce investment into the corporation's brands in markets that have lower potential.
The announcement came from 888 CEO Itai Pazner, who said that the company is looking into how it conducts its business. The group holds control of 888, William Hill, and Mr Green in various markets. 888 is now focused on using resources to capitalize on market presence. 888 will find markets where they have the highest growth potential and focus on promoting the brands within those areas. Brands that don't seem to have the ability to grow in a region will be put onto the backburner, at least in terms of investment strategy.
Regarding the strategy, Pazner said, "We're planning to take the best brands for each market, invest in them and then obviously reduce investments in brands that need to be rationalised and that have a lower potential in each market.
"This gives us an opportunity to put our resources behind the most successful brands with the highest potential for growth in each market rather than investing in all brands and all markets.
"The brand choices are being made now and will be rationalised already in Q4 this year. So just to give a simple example, 888sport in the UK is a challenger brand coming from a very low market share base.
"And if you take that and work that out between all of the different markets, we feel we have a better way to grow sports betting in all of those markets, focusing the marketing investment and the product investments in a road map into a single brand in each of the markets, while keeping the other brands, I would call them secondary or tactical or removing them altogether from the market."
888 has been hit by challenges related to increasing regulatory rules by markets like the UK, Netherlands, and other European markets. The company's revenues dipped 13.1% in the first half of the year, due largely to controls being put in place.
Casino Listings News is following this story and will provide updates as we get ahold of 888's strategy.