888 Casinos Exits U.S. Market, Transfers Assets to Hard Rock
888 Holdings Announces Strategic Shift and Potential Exit from US Market
In a recent announcement, gambling giant 888 Holdings revealed plans for a significant strategic realignment, aiming to achieve cost savings of $37 million (€34 million). The specifics of this realignment are yet to be fully disclosed, but industry trends suggest a focus on core markets, regulatory compliance, and financial efficiency.
Currently, 888 operates in several key markets, including the US states of Colorado, Michigan, New Jersey, and Virginia. However, it seems that the company is considering exiting the US market, as part of this strategic shift. This decision is expected to generate an adjusted operating profit of approximately $29.2 million (€31.6 million).
The exit from the US market is not the only change on the horizon for 888 Holdings. The company has also announced its intention to sell selected assets to Hard Rock Digital (HRD). This sale is contingent on regulatory approvals and certain other conditions and is expected to be completed in stages by the end of the fourth quarter of 2024.
888 Holdings' portfolio of online gambling brands, including 888casino, 888sport, and 888poker, will not be affected by these changes. Existing markets will be optimised to achieve stronger returns in the future, while the company's B2B business in the US will remain unaffected.
In a move to further streamline operations, 888 Holdings has also acquired the gambling brands Mr Green and William Hill in the second quarter of 2022. The company is also planning a rebrand, with plans to rename itself as Evoke in the future.
The strategic realignment and potential exit from the US market come with costs, with around $50 million (€46 million) expected to be spent on termination fees for brand licenses. These changes are part of 888's efforts to improve its financial performance, as the company cites a lower gross profit margin in the US as the reason for the exit.
888 Holdings is a sponsor of sports teams, with a cooperation with German Bundesliga football club RB Leipzig. As the company embarks on this new chapter, it remains to be seen how these changes will impact its ongoing partnerships and future growth.
For the most authoritative and current information, it is recommended to check 888 Holdings' official reports, press releases, or financial disclosures.
- "What is the intention of 888 Holdings, as hinted by the industry trends, in terms of focus areas for their strategic realignment and potential exit from the US market?"
- "Considering 888 Holdings' announcement of selling selected assets to Hard Rock Digital and the potential exit from the US market, can we expect to see a stronger presence of casino-and-gambling businesses in core markets other than the US?"
