Global gambling group 888 Holdings parts ways with several business-to-customer (B2C) assets after a strategic business review.
Hard Rock Digital benefits from 888’s move that the company is calling a “controlled exit of its remaining US B2C operations”.
Hard Rock Digital is one of the United States’ leading sportsbook and online gaming operators. The company has been quick to pounce on the 888 assets after the company conducted its review.
888 sells B2C assets
The operator’s review earmarked the sale of their American-based assets after a rocky 2022 and 2023. The company reported a £115.7 million ($141m) loss in 2022 and £121.3 million ($151m) pretax loss in 2023 respectively.
Per Widerström, CEO of 888 said that “in the US, the intensity of competition and requirement for scale means huge investment is required to reach profitability.”
The leading man at the gambling operator said that despite some U.S. gambling markets doing well, “we (888) have concluded that achieving sufficient scale in the US market to generate positive returns within an accelerated timeframe is unlikely.”
888 concluded that as a “result of the review the Group has agreed the sale of selected assets to Hard Rock Digital (“HRD”), completion of which is conditional upon, amongst other items, relevant regulatory approvals. It is expected that the disposal will be completed in a number of phases, with final completion expected in Q4 2024.”
The dynamic of the U.S. gambling and online gaming market is only continuing to become more complex as 2024 unfolds.
Other than existing businesses giving up their territory in the U.S. market there are limited opportunities for gambling operators to expand their existing markets. This is unless a state allows for more gambling options to be present.
The biggest operators in the U.S. are ready to capitalize in states that have no form of gambling legislation.
An example is the state of Missouri. The home of the current Superbowl-winning champions the Kansas City Chiefs. The football team and other sports teams in the state are lobbying for an ease of the current restrictions on gambling. These established brands are looking to benefit from lucrative sports betting partnerships with brands such as Hard Rock Digital.
Image: Ideogram.
