Gaming Operator 888 Holdings Continues To See Revenue Drop

Article by : Erik Gibbs Aug 18, 2023

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While gaming giants worldwide continue to report growing revenues, the owner of William Hill and online poker company 888 has announced that the company will soon report a decline in revenue. In parallel with a sudden drop in financial numbers, news about the company’s recent settlement has also added to the blow the company has taken this fiscal quarter.

According to official statements delivered by the head of 888, the decline in revenue is expected to continue and extend until the end of the year. The update points to a 4% share decline, which will affect the company’s financial position as it approaches 2024.

In the first half of the year, 888 reported a 7% decline in revenue. The company estimated that this percentage represents just over $1 billion, just below the estimate predicted by JP Morgan.
Although 2023 is testing 888’s financial integrity, the company claims that clear events explain why the enterprise is currently facing what some may consider hardship in an ever-growing industry.

The company’s lead has pointed to the acquisition of William Hill’s non-US businesses in 2022, which has slowed 888’s growing revenue momentum. The acquisition also took place a year sooner than both parties had anticipated.

On top of what company executives defined as a reasonable and justified decline in financial strength, the company announced that they had reached a pending settlement which added to the overall impact on the company’s current situation.

A settlement worth $3.7 million was officially announced between 888’s Virtual Global Digital Services Ltd subsidiary and the Gibraltar Gambling Commissioner. The agreement came as a resolution to address the gaming provider’s service inconsistencies in the Middle East.

To the commissioner, 888 was to be held accountable for various flaws in its service strategy. Not only were inconsistencies reported, yet compliance also became an issue. More specifically, the company failed to collect player details properly and did not place a strict protocol to record essential personal information such as addresses and phone numbers.

The commission also commented on how the company could have kept a more transparent presentation of all its data. Not only were inconsistencies identified in the company’s due diligence but mechanisms were needed to audit, revise and modify such policies accordingly.

In response to the growing financial hardship, 888 has appointed a new CEO due to a request made by its second-largest stakeholder, FS Gaming. The company also expects to revise future positions and has committed to make any changes in the best interest of the company’s financial interest.

While the company solves its financial situation, the scandal leading to its VIP Middle East CEO’s resignation is still being cleaned up. The company has also committed to revising its policies and making necessary changes to avoid similar settlement charges shortly.