888 Considering Selling Off US Business

Online betting giant 888 Holdings revealed this week that it is considering selling off part of its US-facing business and will undertake a strategic review to examine the possibility.

The review began on March 6th and will look into different ways that value for the company can be added. Among the options being looked at are selling off a portion of the US business, leaving the market altogether, and other possibilities. The company recently announced that they've ended their partnership agreement with Sports Illustrated, with whom they ran a sportsbook and casino.

To get out of that deal, 888 had to pay $25 million in cash, with an additional $25 million payment coming somewhere between 2027 and 2029. Despite that high price tag, the agreement will save the company in the realm of $6-7 million over the next two years.

888 offers services in the states of Colorado, Michigan, and Virginia under the Sports Illustrated brand. The company uses its 888 brand in New Jersey for their betting product.

888 has cited high operating costs and lower profit margins as reasons for launching the strategic review.

Regarding the decision, 888 CEO Per Widerström said, "Since commencing my role as CEO I have been focused on ensuring the group is set up to deliver strong value creation in the coming years. In the US, the intensity of competition and requirement for scale means huge investment is required to reach profitability.

"The strategic review of our US B2C operations will continue at pace. I look forward to updating shareholders on our plans for the wider group in late March."

We'll be following up with a news story when 888 releases the decisions reached as a result of the review.

Related casinos

CasinoJurisdictionRatingPlay
888 CasinoGibraltar, Malta, Sweden, U.K.

About the author

Dustin Jermalowicz // News Editor
Dustin Jermalowicz
Dustin has a long-standing passion for gambling. He has been writing professionally on the subject and breaking industry news for Casino Listings since 2011. His favorite casino games include Blackjack, Poker, and Hi/Lo. A proud native of Detroit, Dustin currently lives in Michigan.

Comments

Post new comment

There are currently no comments on this page. Be the first!

Login using your social network account
Or log in with a Casino Listings account

Login or register to post comments

Registering for an account takes less than a minute and you will be brought right back here to comment afterwards.