888 Eyes Complete Withdrawal From the US Online Gaming Market

Article by : Erik Gibbs Mar 7, 2024

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Today, 888, the owner of William Hill, disclosed its decision to part ways with its struggling US business, incurring a cost of $50 million. The gambling giant entered the US market in 2021, a bit behind its competitors, seizing opportunities as states progressively legalized sports betting and online casino games.

Notably, it forged a licensing agreement with the proprietors of Sports Illustrated, leveraging the renowned magazine’s name for its sportsbook. While companies like Flutter and Entain flourished in the American market, reaping millions from events like the Super Bowl in February, 888 faced challenges in gaining traction.

Its 2022 revenue stood at a modest £20 million, securing a mere 0.2% market share, and incurred losses exceeding £12 million. Having struggled to attract sports betting customers, 888 pivoted its focus towards online casino games, a domain where smaller players often yield more profitability. Unfortunately, the legalization of such games in American states has been a slow process.

In response to these challenges, 888 has decided to cut its losses and initiate a review, exploring options that could include a sale, a “controlled exit,” or other strategic transactions for its American arm.

Additionally, the company will part ways with Sports Illustrated, which has grappled with its publishing challenges, marked by layoffs and concerns about the potential cessation of print operations.

888, the major betting company, will pay $50 million to terminate its partnership with Sports Illustrated. The amount includes $25 million upfront and an additional $25 million distributed between 2027 and 2029.

While 888 offers business-to-business services in the US, this sector remains unaffected by the termination. Per Widerstrom, the CEO of 888, emphasized the need for substantial investments to achieve profitability in the fiercely competitive US market.

Despite successful collaboration with Sports Illustrated’s parent company, Authentic, and record-breaking performance for SI Casino, the company acknowledges the challenge of achieving the required scale for positive returns within an accelerated timeframe.

Proceeding diligently with the strategic review of US B2C operations, the company aims to unveil comprehensive plans for the Group to shareholders in late March. The positive market response saw a 3.3% increase in 888’s shares, reaching 85.6p.