888 Holdings is withdrawing from the US internet gaming sector completely. They are offloading their US business to Hard Rock Digital, signaling another major player’s exit from the nation.
This choice comes after a strategic evaluation of their US operations and mirrors Kindred Group’s recent departure. Nevertheless, 888’s chief executive hasn’t dismissed a possible comeback in the future, similar to what Kindred’s CEO suggested lately.
The agreement, pending regulatory green lights, will be concluded in phases, probably concluding by late 2024.
888 will commence scaling down its remaining US activities immediately, with the goal of being entirely out of the market by the close of 2024. They project yearly cost reductions of approximately £25 million (roughly $31.5 million) from 2025 onward, with a significant portion redirected towards expansion projects.
This departure won’t affect 888’s financial objectives declared earlier this year, as they had already accounted for the related expenditures. They do foresee around £4 million in one-time expenses tied to the withdrawal, distributed over the next several years.
The gaming behemoth, 888 Holdings, recently announced its 2023 fiscal results, showcasing a substantial £1.71 billion in earnings. This remarkable sum was significantly driven by their purchase of William Hill earlier that year, a strategic move that cemented their market dominance. Nevertheless, despite the revenue surge (excluding any singular accounting modifications), their post-tax profit experienced a 25% decline, settling at £48.1 million. This implies that absorbing William Hill, while ultimately advantageous, has presented its own financial hurdles.
Further adding to the company’s eventful period, 888 Holdings also faced scrutiny from the UK Gambling Commission, which initiated an examination of their operational permit. Fortunately for 888, they navigated the inquiry without blemish, circumventing any fines or disciplinary measures.